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NEW YORK CITY-New Plan Excel Realty Trust will continue buying and selling centers, and increasingly is looking to ground-up development for growth, executives said at its third-quarter conference call. "We have already reached our 2006 target of $50 million in dispositions and expect to exceed them," said CFO John Roche. "In 2007, we will continue to acquire assets across the spectrum, from class A to value added."
Though the firm failed in a bid to acquire Inland Real Estate Trust, it continues to look for opportunities, executives say. Dispositions should total $50 million next year, says Dean Bernstein, executive vice president of acquisitions and dispositions. "But we are an opportunistic seller," he says. "If we find an opportunity to sell more, we will."
In the last quarter, the company acquired a 40-acre land parcel in Cinnaminson, NJ. New Plan expects to develop an approximately 330,000-sf community shopping center on the land, the site of the functionally obsolete Cinnaminson Mall. The move typifies its growing ability in ground-up development.
The company expects to add up to three development sites in 2007, but these developments will likely be in existing markets. Redevelopment plans for next year will remain similar to 2006, adding four to six new projects each quarter, says Michael Carroll, executive vice president of real estate operations. Currently, the redevelopment pipeline consists of 46 redevelopment projects totaling approximately $320.5 million.
"Building has been an offshoot of redevelopment," Carroll says. "If when tenants push us and it's in a market we're in, that's perfect for us."
FFO for the quarter were $47.8 million, compared with $30.7 million the previous year. Net income was $27.9 million in the quarter, compared with $194.9 million last year (which included a major gain from a $968 million portfolio sale). New Plan's portfolio of 475 properties (including joint ventures) is located across 39 states. Assets total approximately $3.5 billion.
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