Real Estate Investment Trust exceeds quarterly expectations

Agellan Commercial profits were better than expected through the third quarter of the year.

Agellan Commercial Real Estate Investment Trust (REIT) met its third-quarter profit expectations, according to a release from the company.

During the third quarter, Agellan's adjusted funds for operations were $4,312, which was 1.2 percent better than earlier predictions due to higher than expected net operating income.

Aggellan Commercial, which overseas 24 properties, posted a 93 percent occupancy rate, which was 2 percent better than in January.

"For the third consecutive quarter, our results demonstrate our ability to drive leasing and deliver both internal and external growth in our portfolio," said Frank Camenzuli, chief executive officer of the REIT. "We are particularly excited with the leasing activity in our core assets, and the economic growth shown in core markets such as Texas."

At the end of September, the REIT reached a deal to acquire the Beltway 8 Corporate Centre III & IV, which forms a pair of two-story commercial offices located in Houston. The purchase price of the deal was $45 million.

"Moving forward, we will continue to focus on leasing in both Canada and the U.S., as well as, enhance internal value from select development opportunities," Camenzuli added. "We will also maintain our work towards the long term goals of decreasing our payout and leverage ratios."

With no mortgages maturing in 2013 and no debt slated to mature until 2015, refinancing was not a main concern for the company.

The REIT concluded its third quarter with a debt ratio of 55 percent. In January, the debt ratio was 57 percent.

Through the first nine months of the year, total property and property-related revenue was $40,772, which was more than a thousand dollars greater than the projected total of $39,489.

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