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Friday, Feb 23, 2024

REAL ESTATE–Local REITs Record Solid Numbers in 1999

RE/MAX Opens New Office in Alpine Area

Pan Pacific Retail Properties Inc. of Vista and Realty Income Corp. of Escondido reported increased revenues and dividends for 1999.

Pan Pacific achieved a 10.1 percent increase in annual funds from operation to $2.30 per share for 1999 and a 5 percent increase in the quarterly dividend to 42 cents per share, Stuart Tanz, president and CEO, said late last month.

Realty Income recorded a 4.2 percent increase in annual funds from operation to $2.46 per share and a 6.1 percent increase in yearly dividend per share to $2.09, said Tom A. Lewis, president and CEO.

Funds from operation are a performance measure tracked by the real estate investment trust (REIT) industry. It is a measure that excludes gains or losses on the sale of property and depreciation of buildings and is one way of measuring a company’s cash flow and ability to pay dividends, Lewis said.

The positive results from the two companies are no surprise to one local stock watcher, Bud Leedom, publisher of the San Diego Stock Report.

“Both of the companies have strong business models, with Realty Income specializing in single-tenant retail properties leased to chain stores and Pan Pacific holding strip shopping center assets,” Leedom said. “Overall, I think both of these REITs are strong companies.”

He added, however, that with interest rates rising in the past year, all of the REIT stocks, which are bought for their dividends by those seeking current income, are facing competition for investors from corporate bonds and treasury debt instruments.

James Sullivan, an investment analyst with Prudential Securities Inc. in New York, echoed Leedom’s positive comments on Pan Pacific. He specializes in studying the REIT industry. His firm does not follow Realty Income.

On Feb. 14 his firm reiterated its “Strong Buy” rating on shares of Pan Pacific.

“Pan Pacific’s property portfolio performance in 1999 was strong,” Sullivan said.

In his report, Sullivan noted Pan Pacific had joined forces with Eversave.com of Woodburn, Mass., to provide Web sites for its shopping center tenants to help boost sales. The company will benefit as well, because tenants pay a percentage of their revenues to the company in addition to a base rent amount, he said.

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New Office: RE/MAX Hometown Realtors’ new office in Alpine is off to a fast start with eight agents working there getting listings and making sales, its owner said.

The office at 2605 Alpine Blvd. is the second one owned and operated by broker Brian Stewart, who has 25 years’ experience in residential real estate sales. Stewart said Feb. 28 he has operated an office at 9307 Carlton Hills Blvd. in Santee since 1987.

The new office is one of 22 RE/MAX franchise offices in San Diego County, he said.

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New Homes Sell: McMillin Homes of National City has already obtained eight sales contracts and received deposits at the final phase of the Crown Collection within Scripps Ranch Villages, said Linda Wergeland, vice president of sales.

She said one home in the phase is still for sale, as well as two other homes in previous phases.

Marketing began at the neighborhood Feb. 19. The homes, which are priced from $537,990 to $655,990, have one- and two-story floor plans and are from 2,507 to 3,590 square feet in size, she said.

“The neighborhood’s lofty location crowning one of the highest points in Scripps Ranch provides some of the best views the entire community has to offer,” she said.

Located just north of Miramar Lake, the community of Scripps Ranch Villages is 1,200 acres in size and has approximately 2,200 homes, she said.

Hammers And Nails: San Diego-based Bilbro Construction Co. has completed site improvements for Arden Realty Inc. of Los Angeles at Governor Park Plaza, 6363 Greenwich Drive, in the San Diego community of University City, said Bridget Bennett, a spokeswoman for the contractor.

The company provided site renovation of an existing interior courtyard. The work included removal of the landscaping with new stamped concrete paving installed, as well as new exterior landscaping and exterior site lighting, she said.

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Tenant Improvements: Pacific Interior Systems of San Diego has started construction on an 8,000-square-foot build-out of the entire third floor at Jefferson Plaza at 27720 Jefferson Ave. in Temecula. Project manager Mike Slaven said the work included converting what was a single-tenant space into several smaller suites. Johnson & Jennings General Contracting Inc. of San Diego is remodeling a 3,924-square-foot office for Chicago Title Insurance Co. in the company’s office building at 925 B St. in Downtown. Patrick Willette, project manager, said the work included reconfiguring the second-floor space for multiple offices. Jossy+Carrier Design Group of San Diego is under way on space planning and design for the 3,500-square-foot office expansion of Federal Defenders of San Diego, a nonprofit legal firm, in the 225 Broadway building in Downtown.


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