Vornado Realty Trust (VNO) reported strong third quarter 2009 results with FFO (funds from operations) of $234.2 million or $1.25 per share, compared to $159.8 million or 97 cents per share in the year-earlier quarter. Funds from operations, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income. After adjusting items for comparability, FFO during the quarter was $1.18 per share, compared to $1.17 in the prior year quarter. Vornado is the largest publicly traded office REIT in the New York region. The core properties of the company are still performing at a high level and it is maintaining strong occupancies in its NYC office and retail portfolios. The company is also increasing rents in most property formats. We believe this puts the company well ahead of many competitors who have ...

Mack-Cali Realty Corp. (CLI), a fully integrated real estate investment trust (REIT), has recently signed a new long-term lease for its 100,000 square feet Class A JV office property at 1 Jefferson Road in Parsippany, New Jersey. The lessee was Day Pitney LLP, a full-service law firm with approximately 375 attorneys and offices in New York, New Jersey, Connecticut, Massachusetts, and Washington DC.   The deal is reportedly the largest of its kind in the Northern New Jersey region in 2009 and provides an opportunity to Day Pitney to design and construct new space in the building to meet its additional space requirements. Furthermore, the long-term leasing agreement especially during the period of economic uncertainty is testament to the location advantage and the credibility of the asset’s ownership.   The leased property is a joint venture partnership among institutional investors advised by J. P. Morgan Asset Management, The ...

Google’s (GOOG) PowerMeter has started a new chapter. When the company first introduced the free electricity monitoring software back in February, usage was limited to those consumers that already had a smart meter. Management has since been in talks with various device makers and utilities in search of a solution.   The company has now announced its agreement with Energy Inc., which is the maker of a power usage measuring device called TED 5000, or “The Energy Detective". The device can be bought at a minimum cost of $200, which can go up to $300, depending on the features selected.   Installation of Google’s PowerMeter software on the device enables consumers to get near-real time information on power consumed. The system can provide information at 10-minute intervals, compared to roughly a day for the smart meter system currently offered by some utilities.   The delay related to utilities ...

AvalonBay Communities, Inc. (AVB), a leading real estate investment trust (REIT), has recently sold its 171-unit apartment complex in Quincy, Massachusetts for $27.2 million to CB Richard Ellis Investors, a global real estate investment management firm.  The apartment complex, called ‘Faxon Park’, is 100 leased and includes various amenities like clubhouse, swimming pool, and playground. The property offers an ideal location for easy commute to Boston and other surrounding communities.  CB Richard intends to upgrade the property and renovate common areas before utilizing it for commercial/residential purposes. AvalonBay’s portfolio has held up better than its peers in an economic downturn due to its assets in infill supply-constrained areas where new apartment construction activity is very limited.  The company has Class A assets located in premium markets, such as Washington DC, New York City, and San Francisco, where the spread between renting and owning is still ...

The most dramatic account I've ever seen about the shooting of Paul Joyal (he did survive, and often shows up at Washington DC-area events on Russia), who was a producer on NBC Dateline's story to report on the murder of Alexander Litvinenko.  Looks like the local police are not pursuing the right leads.It was raining when Paul Joyal pulled into his driveway in this suburb 10 miles from the White House. As he stepped out of his car, nothing seemed amiss. He did not see two men lurking in the darkness. But suddenly, he was under attack, cold-cocked on the side of his head. The 55-year-old Joyal fought back. He elbowed one of the attackers in the gut and bowled ...

Taubman Centers Inc. (TCO) recently said it would record impairment charges of $161 million to $169 million in the third quarter. The real estate investment trust is writing down book values of its The Pier Shops at Caesars asset in New Jersey and Regency Square in Virginia to fair values due to the continued economic downturn.

The Pier Shops at Caesars is a 282,000 square feet shopping center in which Taubman owns a 77.5% stake. The company considers net operating income from the property to be insufficient to repay its $135 million non-recourse mortgage debt. Thus, it will write down book value of the asset by $106 million to $111 million, out of which Taubman has a share of about $100 million to $105 million.

Regency Square is an 820,000 square feet shopping center housing leading fashion retailers like Macy’s Inc. (M), J. C. Penney Co. Inc.

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Universal Healthcare Services, Inc. (...

Real estate investment trust Cousins Properties Inc. (CUZ) recently said it would record an impairment charge of $39 million, or 74 cents per share, in the third quarter relating to its joint venture interest in Terminus 200. This 565,000 square feet office building in Atlanta, in which Cousins holds a 50% stake, was completed last month.

The company said the impairment charge would not impact its ownership interest in the project and it would continue to be the property manager and leasing agent of the asset.

In a separate development, Cousins announced a public offering of 32 million common shares and an underwriter option to purchase an additional 4.8 million shares. The company plans to use the proceeds to repay its debt under the revolving credit facility and for general corporate purposes. J. P. Morgan of JPMorgan Chase & Co. (JPM), Bank of America Corp. (BAC)

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bReason for comment/bbrbr On 10 September 2009, the company provided details of four new Manufacturer’s Representatives added to its sales organization, some operational detail and further information on its financing intentions. pThe new territories with representatives in parentheses are: Washington DC, Virginia (Energy Advanced); Southern New York State (Accardi Companies); Connecticut (Analytics Combustion Services); and Kansas, Iowa and Missouri (Hughes Machinery Equipment). pManagement notes that the rep training programme has been enhanced and that the three day programme in August with Canromex, its new Mexican rep, was a success. pSofame also disclosed that it had “approved a private placement of equity securities up to C$2m Canadian Dollars to accredited investors resident in Canada and elsewhere”. This is in addition to the debt financing agreement with Township Capital previously announced for a like C$2m. pThe press release goes on to state that Sofame is involved in discussions with several potential lenders ...

Vornado Realty Trust (VNO), a leading real estate investment trust (REIT), recently announced the sale of an office property in the CBD of Washington DC. However, Vornado will continue to manage the property on behalf of the new owner.   The property spanning 25,000 square feet of space was sold to an institutional investor for $207.8 million or $830 per square foot at a cap rate of 6.3%. Vornado realized a net profit of approximately $41 million from the sale, and received net proceeds of $90 million after the repayment of the existing construction loans.   The property was 100% pre-leased to Mayer Brown LLC, a leading global law firm with offices in key business centers across the Americas, Asia and Europe. The new office building was designed by Helmut Jahn, a German-American architect and designer of dozens of major buildings throughout the world. The property also had LEED-CS ...