Heritage Property Investment Trust, Inc. Announces Third Quarter Leasing and Investment Activity
02 November 2005 - 9:37AM
PR Newswire (US)
Confirms Third Quarter Earnings Conference Call for Wednesday,
November 9, 2005 BOSTON, Nov. 1 /PRNewswire-FirstCall/ -- Heritage
Property Investment Trust, Inc. (NYSE:HTG) ("Heritage" or the
"Company"), today reported recent investment activity and certain
operational highlights for the quarter ended September 30, 2005.
Highlights included: * Acquired three additional shopping centers
located in Connecticut, New Jersey and South Carolina * Completed
acquisition of 40% minority partnership interest in shopping center
located in Franklin, Tennessee * Entered into joint venture for the
development of shopping center to be anchored by Cabela's PORTFOLIO
OVERVIEW General As of September 30, 2005, Heritage had a shopping
center portfolio of 171 properties, located in 30 states and
totaling approximately 34.9 million square feet of total gross
leasable area, of which 28.7 million square feet is company-owned
gross leasable area. Leasing Activity During the third quarter of
2005, the Company executed 200 leases (new and renewed), for
719,000 square feet in the Company's shopping center portfolio. In
doing so, the Company achieved a 4.8% increase over prior rents on
a cash basis from $12.18 per square foot to $12.76 per square foot.
For the first nine months of 2005, the Company has signed 499
leases (new and renewed), for 1.8 million square feet in the
Company's shopping center portfolio. In doing so, the Company
achieved a 6.6% increase over prior rents on a cash basis from
$11.86 per square foot to $12.64 per square foot. At September 30,
2005, the percentage of the Company's portfolio leased was 92.5%,
an increase of 0.4% from the same period last year. At June 30,
2005, the Company's portfolio was 92.5% leased. INVESTMENT ACTIVITY
Acquisitions During the third quarter, Heritage completed the
acquisition of three additional shopping centers located in
Simpsonville, South Carolina; Parlin/Old Bridge Township, New
Jersey; and Manchester, Connecticut. As a result of these
acquisitions, the Company added over 700,000 square feet of gross
leasable area to its portfolio. The aggregate purchase price paid
by the Company for these three shopping centers was approximately
$142 million, including approximately $29 million of assumed
mortgage indebtedness and approximately $6 million of operating
partnership units in one of the Company's operating subsidiaries.
In addition, on August 2, 2005, Heritage completed the acquisition
of the 40% minority partnership interest in Williamson Square
Shopping Center, located in Franklin, Tennessee, held by Heritage's
joint venture limited partner. As a result, Heritage owns 100% of
the partnership interests in Williamson Square. The purchase price,
which was based on a formula set forth in the partnership
agreement, was $2.9 million and was funded with borrowings under
the Company's line of credit. Heritage also repaid upon maturity
the previously outstanding mortgage indebtedness encumbering
Williamson Square. As a result, Williamson Square is now
unencumbered. Development Joint Ventures Heritage also announced
that it has entered into a joint venture for the development and
construction of a new 625,000 square foot shopping center to be
located in La Vista, Nebraska, part of the greater Omaha metro
area. The new center is expected to be anchored by Cabela's, a
leading specialty retailer, of hunting, fishing, camping and
related outdoor merchandise. If ongoing negotiations for the
project conclude successfully, Heritage expects that Cabela's will
open its new, approximately 125,000 square foot location as early
as fall 2006. The La Vista retail store would be Cabela's third
store in Nebraska, the company's home state. Capital Raising Joint
Venture As previously announced, Heritage has been exploring
capital raising joint venture opportunities involving an initial
contribution of certain of its existing assets and the funding of
future shopping center acquisitions. Although no agreement
regarding any transaction has been entered into, Heritage is
pleased to report that it has tentatively selected a joint venture
partner and is currently negotiating the principal terms of the
joint venture. Assuming an agreement is reached, the Company
anticipates completing the joint venture during the late fourth
quarter of 2005 or early first quarter of 2006. 3rd QUARTER
EARNINGS RELEASE AND CONFERENCE CALL As previously announced,
Heritage will release its financial results for the third quarter
on November 8, 2005 and members of Heritage's senior management
will host a conference call on Wednesday, November 9, 2005, at
10:00 a.m., ET, to discuss the Company's third quarter results.
Stockholders, analysts and other interested parties may participate
in this conference call by dialing 800-867-0448 and 303-262-2191 at
least five minutes before the scheduled start time. Investors can
also access the call via the Internet at the Company's website,
http://www.heritagerealty.com/. To listen to a live broadcast,
access this site at least 15 minutes prior to the scheduled start
time in order to register, download, and install any necessary
audio software. A replay of the conference call will be available
after the call through November 16, 2005 by accessing the Company's
website at http://www.heritagerealty.com/ or by dialing
800-405-2236 and 303-590-3000, passcode 11040071. ABOUT HERITAGE
PROPERTY INVESTMENT TRUST, INC. Heritage is a fully integrated,
self-administered and self-managed REIT traded on the New York
Stock Exchange under the symbol "HTG". Heritage is one of the
largest owners and operators of neighborhood and community shopping
centers in the United States. Heritage focuses on grocer-anchored
shopping centers with multiple anchors. Heritage is headquartered
in Boston Massachusetts and has an additional 16 regional offices
located in the Eastern, Midwestern and Southwestern United States.
For more information about Heritage, please refer to Heritage's
website, http://www.heritagerealty.com/. DATASOURCE: Heritage
Property Investment Trust, Inc. CONTACT: Patrick O'Sullivan, Vice
President, Finance and Accounting of Heritage Property Investment
Trust, Inc., +1-617-247-2200, ; or Claire Koeneman, Analyst Info,
+1-312-640-6745, or Joe Calabrese, General Info, +1-212-827-3772,
both of Financial Relations Board for Heritage Property Investment
Trust, Inc. Web site: http://www.heritagerealty.com/
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