CBL & Associates Properties, Inc. (CBL) recently announced that it has entered into a 75/25 joint venture with Horizon Group Properties, Inc. to develop a property in Atlanta (Woodstock), GA. The construction of the to-be-developed property, named The Outlet Shoppes, will begin in spring 2012, and is expected to be completed by late summer 2013. As per the agreement, Horizon will be responsible for leasing and managing this project.
The Outlet Shoppes at Atlanta is a 370,000-square-foot project that will likely be a premium outlet destination for a large number of tourists and residents in the local area. Atlanta is one of the most visited cities in the United Sates and possesses one of the best outlet markets in the country and attracts more than 35 million tourists annually.
This project would enable the company to contribute to the local area economy by creating significant employment opportunities and also generating revenue.
CBL reported third quarter 2011 funds from operations (FFO) of 48 cents per share compared with 47 cents in the year-earlier quarter. Fund from operations, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and other non-cash expenses to net income.
CBL is one of the largest and most active owners and developers of malls and shopping centers in the United States. CBL owns, manages 159 properties, including 87 regional malls/open-air centers.
The properties are located across 26 states totaling 86.3 million square feet including 3.4 million square feet of non-owned shopping centers.The company looks forward to sustaining its success through expansions, renovations and aggressive leasing at its properties.
CBL currently retains a Zacks #2 Rank, which translates into a short-term Buy rating. We are also maintaining our long-term Neutral recommendation on the stock. One of its competitors, Simon Property Group Inc (SPG) holds a Zacks #3 Rank, which translates into a short-term Hold rating.
CBL&ASSOC PPTYS (CBL): Free Stock Analysis Report
SIMON PROPERTY (SPG): Free Stock Analysis Report
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment