Search
 

Equity Spent $5M Chasing Archstone Shares

CHICAGO-The REIT won’t incur much extra costs if it bids another $1.3 billion for the remaining minority Archstone interest, which would create a bidding war with Lehman Bros.

By Robert Carr | Updated on February 03, 2012

CHICAGO-Sam Zell’s Equity Residential reported a strong fourth quarter Thursday in a conference call, though it lost about $5 million in a failed bid for a 26.5% interest in Denver-based Archstone. The trust still may try to put in another $1.3 billion offer, though Lehman Bros. still has the right of first refusal, but Equity may gain up to $80 million in the deal if the second bid also fails.

The locally based multifamily REIT reported a gain in funds from operations in the fourth quarter 2011 to 64 cents per share, about $201 million, from 45 cents per share, about $136 million, in fourth quarter 2010. David Neithercut, CEO and president, said during the call that the performance was a result of continued strength in fundamentals, driven by a population that’s shunning home ownership and embracing the flexibility of rental housing. He said severely limited supply, causing high occupancy and raised rental rates, will create a good 2012 rental year for the company.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.