- Vornado's (VNO) shopping center ops, which include 81 strip malls and 4 regular malls, will be spun off into a publicly-traded REIT. A SEC Form 10 filing is expected in Q2, and distribution is expected to finish Q4.
- The strip malls are mostly in the Northeast, and the regular malls are split between NJ and Puerto Rico. Altogether, the properties contain 16.1M sq. feet and had a 95.5% average occupancy at the end of 2013, and are expected to yield 2014 net op. income of $200M. Average base rent is $18.75/sq. foot, above a peer median of $15.66/sq.foot.
- Vornado will hold onto 20 small retail assets (valued at ~$100M) and a couple of properties already under contract to be sold. The company plans to maintain its current $2.92/share dividend.
- Equity One (EQY) CEO Jeffrey Olson will be the spinoff's chairman and CEO.
- Previous: Vornado considers shopping center spinoff
at Zacks.com (Nov 4, 2014)