Investors Real Estate Trust has purchased Rochester portfolio of a 393-unit luxury townhouse for a sum of $72.5 million, Zacks reported.
The acquisition is part of the company's strategy to focus on premium institutional properties through portfolio reposition and capital recycling. The move makes Investors Real Estate Trust as the largest apartment owner and operator in the market, having 1,773 units now in its portfolio in Rochester.
According to Zacks, the purchase comprise of four multifamily communities, namely, Avalon Cove at 3202 Avalon Cove Lane NW (187 units), Cascade Shores at 144 Beach Lake Road SW (90 units), Crystal Bay at 2450 Crystal Bay Court SW (76 units), and French Creek at 2000 Chardonnay Lane NW (40 units).
Riverside Gazette reported that the company's stock was rated buy after Tuesday's gap up by $0.07 with $9.39 target from the day's share price of $7.28. Investors Real Estate Trust would have an additional value of $286.07 million should it hit the share price target. It is currently worth $986.44 million.
Earlier this month, the company announced a regular quarterly distribution of $0.13 per share/unit that is payable on April 1, 2016, per PR Newswire. This is applicable to shareholders and unitholders on record as of March 21, 2016. The company issued a regular quarterly distribution of the same amount last Jan. 15, 2016.
Investors Real Estate Trust is a real estate investment trust which operates mostly in the upper Midwest. It has also recently announced the disposition of a student housing portfolio in St. Cloud, MN for $5.6 million. The company has a portfolio of 173 properties with a total of 4.5 million square feet of space open for lease. In addition to multifamily properties, the trust also owns healthcare properties such as senior housing, industrial properties and other commercial properties.