DCT Industrial Trust Inc. (DCT), a real estate investment trust (:REIT), recently acquired two Class A industrial buildings named DCT Claymoore Center spanning 98,000 square feet in the Northwest submarket of Houston.
DCT Claymoore Center is a multi-tenant facility containing both bulk and light industrial facilities. Currently 95.8% occupied, the buildings also features rear load and cross dock buildings.
This acquisition is expected to be beneficial to DCT as it offers direct access and visibility to the Sam Houston Toll Road. The strategic move on the part of the company is aimed at strengthening its presence in the Northwest Submarket of Houston. With this deal, DCT Industrial’s Houston portfolio is 98.1% leased spanning 3.5 million square feet.
DCT Industrial reported first quarter 2012 FFO (funds from operations) of $29.0 million or 11 cents per share, compared with $23.4 million or 9 cents per share in the year-earlier quarter. Fund from operations, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization as well as other non-cash expenses to the net income.
DCT Industrial owns, operates and develops high-quality bulk distribution and light industrial properties in high-volume distribution markets in the U.S. and Mexico.
As of March 31, 2012, the company owned interests in approximately 75.4 million square feet of properties leased to approximately 900 customers. This includes 17.2 million square feet of properties operated on behalf of five institutional capital management partners.
DCT Industrial 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, Duke Realty Corp (DRE) carries a Zacks #3 Rank, which translates into a short term Hold rating.
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