In sync with its capital-recycling plan, First Potomac Realty Trust FPO divested 827,925 square feet of its Richmond, VA portfolio for $60.3 million. The Richmond portfolio comprises 6 business park properties including 19 single-story office, office/flex and industrial buildings. This owner, operator and developer of office and business park properties in the Washington D.C., Maryland and Virginia areas continues to focus on enhancing its multi-story office buildings portfolio with well-located assets.
As of Dec 31, 2014, the Bethesda, MD-based real estate investment trust (“REIT”) owned a consolidated portfolio spanning 8.8 million square feet. On an annualized cash basis rent, it owned 60% office properties, and 40% business park and industrial properties.
The company’s divestiture of Richmond portfolio corresponds with its strategy of selling non-core properties and reinvesting the proceeds in high-growth, high-quality, multi-story office buildings located mainly in the Washington, D.C. area.
Notably, First Potomac had declared its capital recycling plan in Jan 2013. Since the announcement of its capital recycling plan, the REIT has sold 33 properties for a total of $433 million. It used the proceeds for acquiring core properties as well as paying off debt. We believe the company will enhance the quality of its portfolio through the latest divestiture, utilizing the proceeds according to its capital-recycling strategy.
First Potomac currently carries a Zacks Rank #3 (Hold).
Better-ranked equity REITs include Ryman Hospitality Properties, Inc. RHP, CareTrust REIT, Inc. CTRE and Kilroy Realty Corp. KRC. All these stocks sport a Zacks Rank #1 (Strong Buy).
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