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.
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