Cole Credit Property Trust II Raises Estimated Share Value by 16%
Cole Credit Property Trust II Raises Estimated Share Value by 16%
Phoenix, Arizona (PRWEB) August 03, 2011
Cole Credit Property Trust II, Inc. (CCPT II), sponsored by Cole Real Estate Investments, one of the nation’s largest acquirers of high-quality, income-producing commercial real estate assets, has announced an estimated share value of $ 9.35 as of July 27, 2011. This represents a 16% increase over the previous share valuation of $ 8.05 set in June 2010. CBRE Capital Advisors, Inc., an independent investment banking firm, acted as an advisor to CCPT II.
“Our conservative investment strategy of focusing on institutional quality commercial real estate leased to high-quality tenants helped us avoid many of the challenges experienced by other investment programs and real estate investing strategies over the past few years,” said Marc Nemer, Chief Executive Officer of Cole Real Estate Investments.
As of its most recently filed quarterly financial statements, CCPT II maintained an occupancy rate of 95% and an average remaining lease term of more than 11 years. The portfolio is also diversified across 727 properties in 45 states. Additionally, five major tenants, who account for more than 19% of the portfolio’s revenues, have recently received upgrades in their credit rating or outlook. A credit upgrade for a tenant not only adds value to the portfolio by enhancing its overall credit strength, but also underscores the quality of Cole’s investment process and underwriting capabilities.
Funds from operations in the portfolio remain steady, and CCPT II will maintain the current annualized distribution rate of 6.25% for the third quarter of 2011, based on the original $ 10.00 offering price. This annualized distribution rate equates to 6.68% based on the new estimated share value of $ 9.35.
Cole Real Estate Investments also continues to review strategies for a portfolio exit by CCPT II within the next 12 months. “We believe that the continued commercial real estate market recovery favors high-quality portfolios like CCPT II,” said Nemer. “Potential exit strategies we are evaluating include, but are not limited to, a sale of the portfolio or a listing of the portfolio on a public stock exchange. Maximizing shareholder value is our highest priority, and we are committed to selecting the option, or combination of options, at the right time that will produce the best results for our shareholders.”
About Cole Real Estate Investments
Founded in 1979, Cole Real Estate Investments is one of the most active acquirers of core real estate assets, managing one of the country’s largest portfolios of retail properties. Cole primarily targets net-leased single-tenant and multi-tenant retail properties under long-term leases with high credit quality tenants, as well as single-tenant office and industrial properties. Cole executes a conservative investment and financing strategy designed to provide investors with the opportunity for stable current income and capital appreciation. Today, Cole-related entities own and manage more than 1,450 properties representing 49 million square feet of commercial real estate in 46 states with a combined acquisition cost of over $ 8 billion.
Forward-Looking Statements
Certain statements in this press release may be considered forward-looking statements that reflect the current views of Cole Real Estate Investments, CCPT II and their management with respect to future events. Forward-looking statements about CCPT II’s plans, strategies and prospects are based on current information, estimates, and projections; they are subject to risks and uncertainties, as well as known and unknown risks, which could cause actual results to differ materially from those projected or anticipated. Forward-looking statements are not intended to be a guarantee of any event, action, result, outcome, or performance in future periods. Cole Real Estate Investments and CCPT II do not intend or assume any obligation to update any forward-looking statements, and the reader is cautioned not to place undue reliance on them.
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