In addition to three centers currently under contract, the company says it has or will enter into exclusive listing agreements with real estate brokers to market and sell an additional nine community centers. The company expects proceeds of approximately $32 million from the sale of the properties currently listed or under contract to be sold.
However, as a result of the disposition, the company expects to dish out approximately $15 million during the third quarter of 2005. The company also revised its 2005 outlook, estimating earnings per share to be in the range of 17 cents to 23 cents and FFO per share to be in the range of $1.96 to $2.02.
Glimcher Realty will retain ownership of four of its community center assets: Morgantown Commons in Morgantown, WV; Polaris Towne Center in Columbus, OH; Ohio River Plaza in Gallipolis, OH; and Knox Village Square in Mount Vernon, OH. Two of the centers are adjacent to company owned enclosed regional malls.
Michael P. Glimcher, president and CEO, says the sales coincide with the company's strategic focus on anchored retail centers and on upgrading the overall quality of its portfolio. "We anticipate proceeds from the sale of these remaining community centers will ultimately be redeployed into our higher yielding redevelopment program," he says.
Since, 2004, the company has been disposing of its community center holdings to invest in regional malls. "We're typically a holder of properties; we have never sold," Glimcher told GSR back in January. "I see this company being a lot more fluid. We have to look at assets, and ask 'Is this the best asset to own at this time?' We recognize we're not going to be the biggest in the industry, so we're going to be a little more fluid. When we think we've maximized value out of assets, we'll probably be moving that money into new properties."
At this point, the company has generated more than $145 million from the sale of community centers since 2004 at an anticipated net gain of $8 million upon completion of the disposition program.
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