Recently, FelCor Lodging Trust Incorporated FCH has been aiming to increase its shareholders’ value by disposition of assets. In fact, in CEO Spotlight video interview at REITWorld 2015: NAREIT’s Annual Convention for All Things REIT at the Wynn Las Vegas, published in reit.com, Richard Smith, president and CEO of FelCor, explained the company’s asset disposition strategy. The Irving, TX-based real estate investment trust’s (“REIT”) goal is to improve capacity and utilize the sale proceeds for other high-yielding assets.
In Jul 2015, FelCor had announced the sale of three non-strategic hotels for total proceeds of $90 million. The transaction was in sync with the company’s strategy to reposition properties and repay outstanding debt. Further, during that period, the REIT had inked contracts to sell the remaining two non-strategic hotels by third-quarter 2015. In Sep 2015, the REIT sold the final hotel under its disposition program.
As pointed out by Smith, the company is presently seeking to opportunistically sell its assets and use the proceeds for enhancing its shareholders’ value.
FelCor currently carries a Zacks Rank #3 (Hold).
Investors interested in the REIT space may consider stocks like Hersha Hospitality Trust HT, Getty Realty Corp. GTY and Mack-Cali Realty Corp. CLI All three stocks sport a Zacks Rank #1 (Strong Buy).
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