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SAN DIEGO-Local firm Pan Pacific Retail Properties is making a move to simplify its capital structure with the decision to buyback outstanding non-managing member LLC units, according to company officials.
As part of the agreement, the retail REIT will buyback 314,587 outstanding non-managing member LLC units at a price of $66.61 per unit, according to a statement released by the firm's president and CEO, Stuart A. Tanz.
The LLC units were originally issued in 1999 as part of a grocery-anchored shopping center acquisition. Pan Pacific financed the deal through a draw on its unsecured credit facility, according to a company filing.
The firm, which counts 139 properties, encompassing approximately 22.7 million sf of retail space in its portfolio, saw its stock price close at an even $67 yesterday, after opening at $66.84. In all, the firm's financials have fared well this year.
The first quarter results released late last month reveal a firm experiencing steady growth. Pan Pacific witnessed earnings of $0.60 at the close of the first quarter, with net income of $24.3 million. The firm saw a bump of 6.1% in FFO to $40.5 million vs. first quarter a year ago, and a 5.4% increase in FFO per share vs. a year ago's numbers.
The firm is the nation's largest REIT focused exclusively on the West Coast with its portfolio divided into five regions: Northern California, Southern California, Washington, Oregon and Nevada. Those properties saw 97.1% occupancy at the end of the first quarter, with 199 leases executed, totaling 655,792 sf.
Upon the release of the first quarter numbers, Tanz said: (Our) first quarter occupancy reached a new six-year high of 97.1% as our leasing team executed a record number of leases and achieved a 20.5% increase, on average, in same-store re-leasing base rent." He added that the REIT will continue to "focus on furthering our market presence in key West Coast metropolitan regions through our acquisition and disposition activities."
The firm has built its portfolio with retail buys such as last year's $33 million acquisition of Silverdale Plaza, in Silverdale, WA. The 170,400-sf retail center was 100% occupied with tenants including Safeway, Rite Aid, Jo-Ann Fabrics & Crafts and Staples, at the time of the purchase.
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