Northern Trust Corporation (NTRS) recently declared its intention to move its Miami office from 700 Brickell to 600 Brickell, at Brickell World Plaza. In Brickwell World Plaza, Northern Trust will occupy 62,000 square feet of space on 3 floors and a 2,000 square-feet lobby level banking hub as well. The relocation is expected to be complete by the end of this year.
The bank’s present location was purchased by Swire Properties Limited’s (SWPFF) U.S. unit, which is one of South Florida’s chief international real estate development companies. Northern Trust and the other co-owners sold the office property for $64.1 million on Jul 15. The bank expects a pre-tax gain of approximately $30 million in the third quarter of 2013 from the sale.
Northern Trust’s continual expansion in Florida compelled it to change its headquarters in the state to 600 Brickell, which offers the finest amenities as well as first-class infrastructure. Management expects clients to benefit from the modern infrastructure of Brickell World Plaza, such as an internationally certified information technology security system, expandable IT capacity, and a green environment with LEED Platinum pre-certification.
We believe that Northern Trust’s relocation indicates the bank’s plans of modernizing its Florida headquarters, which have remained the same for more than 40 years. The improved facilities at Brickell World Plaza will help in serving clients better in a technology-driven world.
Northern Trust is scheduled to report second-quarter 2013 earnings on July 17, 2013. The earnings ESP (Read: Zacks Earnings ESP: A Better Method) for the quarter is -1.21%. This reduces the chances of the company posting a positive earnings surprise, despite it carrying a Zacks Rank #2 (Buy).
Other Stocks to Consider
Though we are not optimistic about Northern Trust’s earnings, many financial companies are likely to beat earnings this quarter. Here are some stocks that are worth a look as our model shows them to have the right combination of elements to post an earnings beat this quarter:
Prosperity Bancshares Inc. (PB) with earnings ESP of 1.14% and a Zacks Rank #2 (Buy), which is expected to report earnings on Jul 24.
First Horizon National Corporation (FHN) with earnings ESP of 5.26% and a Zacks Rank #3 (Hold), which is expected to report earnings on Jul 19.
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