REIT Watch: Calloway Acquires Four Shopping Centres for C$231.5 Million

By: James Navarro de Paz
James Navarro de Paz
James is one of our real estate development analysts. James ensures we're constantly reporting on the latest information regarding… read more.
on Aug 2, 2013

**Canada**

**Calloway Acquires Four Shopping Centres for C$231.5 Million**
iNVEZZ.com Friday August 2nd: Calloway REIT, one of Canada’s largest real estate investment trusts with a portfolio valued at about C$7 billion (₤4.45 billion), announced yesterday that it would pay C$231.5 million (₤147 million) to acquire four Ontario shopping centres anchored by Walmart.

The buildings are located in Ottawa, Kanata, Niagara Falls, and Port Perry and have a gross leasable area of 820,000 sq. ft. The acquisition will be funded by a combination of the proceeds from a C$150 million unsecured debenture offering, existing financial facilities and potential issuance of shares.
“We are delighted to be adding these high quality, national tenant dominated shopping centres to Calloway’s existing strong portfolio of open format shopping centres,” said Huw Thomas, Calloway’s president and CEO.

The REIT said that all four shopping centres were fully occupied and would immediately add to the company’s revenue stream from operations.
**United States**
**Sabra Health Care REIT Sees Decline in Q2 FFO and Net Income**
Sabra Health Care REIT reported yesterday that net income and funds from operations (FFO) decreased in the second quarter ended June 30, as new senior living construction activity picked up.

FFO fell by 64 percent to $0.13 per share in second quarter compared to $0.36 a year earlier. The REIT also reported a net loss attributable to shareholders of $0.09, down from $0.16 net income in the same period last year. Revenues increased to $32.3 million (₤20.5 million) from the previous year’s $25.1 million (₤15.9 million).
The REIT recently acquired a $6.2 million (₤3.9 million) Virginia assisted living community and reached a new pipeline agreement with Meridian Realty Advisors to buy up to ten newly constructed properties.

“Although deal activity was light for the quarter, our pipeline showed an increase in activity by the end of the quarter and continues to be healthy at approximately $300.0 million (₤190 million), comprised of approximately 65% senior housing assets and 35% skilled nursing/post-acute assets,” said Rick Matros, Sabra’s chief executive officer.
**Aviv REIT Buys $9.3 Million Skilled Nursing Facility**
Aviv REIT announced today that it had acquired a post-acute, long-term care skilled nursing facility (SNF) in Kentucky for $9.3 million (₤5.9 million). The property is triple-net leased to Diversicare Healthcare
Services and has an initial cash yield of 10.25 percent.
!m[Sabra Health Care REIT Sees Decline in Q2 FFO and Net Income](/uploads/story/4546/thumbs/pic1_inline.png)
“We began our relationship with Diversicare in 2012 and we are pleased to continue to grow our relationship with them,” said Craig M. Bernfield, chief executive of Aviv.
**United Kingdom**
**Analysts on British Land**
Numis Securities reaffirmed its “hold” rating on British Land in a research note sent to investors on Thursday. The broker gave the shares a price target of 615.00p.
Two investment analysts have rated the stock with a “sell” rating, eight have assigned a “hold” rating and eight have given it a “buy” rating. British Land currently has a consensus rating of “hold” and an average price target of 620.47p. Shares in the real estate investment trust lost about 0.90 percent in today’s session and at 14.30 BST were at 602.50p.
**Calloway REIT’s share price was C$24.62 as of 02.08.2013, 14.33 BST.**
**Sabra Health Care’s share price was $24.80 as of 02.08.2013, 14.33 BST.**
**Aviv REIT’s share price was $24.18 as of 02.08.2013, 14.33 BST.**
**British Land’s share price was 602.00p as of 02.08.2013, 14.33 BST.**

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