(RALEIGH, NC) -- Following a strategy of unloading older non-core assets that would need expensive improvements, Highwoods Properties Inc. today announced the $62.1 million sale of three retail centers in Kansas City, MO.
"Our focus remains on continuing to improve the overall quality of our portfolio through the disposition of older, non-core assets," says Highwoods president and CEO Edward J. Fritsch.
"By selling these older, capital intensive retail centers, we are avoiding over $3 million in building improvements that would have been incurred over the next two years."
The three 55-year-old retail centers total 416,000 square feet, have an average leasing level of 94.5 percent and generate yearly cash net operating income of about $5.4 million.
In Kansas City, Highwoods owns and operates 2.3 million square feet of office and retail centers in and around the Country Club Plaza, a high-end shopping complex tenanted mostly by national retailers.
In other financial activity, Highwoods is offering 5.8 million in common stock shares to the public. The stock is trading at around $23 per share on the New York Stock Exchange.
Highwoods plans to use net proceeds from the stock sale to repay debt and for general corporate purposes. According to its March 2009 financials, Highwoods has assets of $2.93 billion and liabilities of $1.86 billion.
The company listed a gross profit of $74.17 million on total revenue of $115.97 million in March 2009.
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