American Realty Acquires Asset


Consistent with its strategy of portfolio optimization and increasing the tenant mix, New York-based American Realty Capital Properties Inc. (ARCP) recently announced the acquisition of Mrs. Baird's distribution facility for approximately $6.2 million, excluding closing costs. The property, spanning 75,050 square feet, is situated in Dallas, TX.

Mrs. Baird's distribution facility is 100% net leased to and guaranteed by Bimbo Bakeries. The lease term, spanning 15 years, has around 5 years remaining. Bimbo Bakeries is a wholly owned subsidiary of Mexico-based Grupo Bimbo SAB de CV, the world’s largest baking company, with a presence in the Americas, Asia and Europe.

Recently, the company also acquired six FedEx Freight distribution facilities and one John Deere distribution facility for a combined purchase value of $38.3 million. Moreover, the company also inked a deal to acquire Reckitt Benckiser property in the near term.

With the acquisition, American Realty has successfully surpassed its previous estimate of increasing the total size of its portfolio to around $183.8 million, comprising 97 properties. As of now, the company possesses 119 properties worth approximately $216.5 million.

American Realty is a real estate investment trust (:REIT) that owns and acquires single tenant freestanding commercial properties subject to net leases with high credit quality tenants. The company primarily invests in office and retail properties.

American Realty, which competes with the likes of Federal Realty Investment Trust (FRT), is scheduled to release its second quarter 2012 earnings on July 31, 2012. The Zacks Consensus Estimate for second quarter 2012 FFO (fund from operations) is pegged at 20 cents per share. We presently have a long-term Underperform recommendation on the stock. Also, it holds a Zacks #5 Rank (a short-term Strong Sell rating).

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