Real Estate Investment Trust Update
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Office Update for 3-30-07

Industrial Update for 3-30-07


Office & Industrial News

OFC to Buy $363.9 Million Office Portfolio   Businesswire 1-17
    Corporate Office Properties Trust announced an acquisition of 56 operating properties containing 2,352,000 square feet and 187 acres of land at a cost of $363.9 million, including approximately $1.4 million in transaction costs, all located in Maryland. The buildings are located in the submarkets of White Marsh, Columbia, BWI, Towson and Hunt Valley. The total price was funded through $182.4 million in debt assumption and cash, with the seller receiving $154.9 million in the form of common shares issued at a deemed value of $49.00 per share and $26.6 million in Series K convertible preferred shares with a fixed coupon of 5.6%.

Vornado & Partners Make $21.6B Bid for EOP   Bizjournals 1-17
    Vornado Realty Trust, Starwood Capital and Walton Street have offered a competing bid to buy Equity Office Properties Trust for $21.6 billion. The $52 a share offer is more than Blackstone Group's November bid of $48.50 a share. Vornado, Starwood and Walton Street would pay $13.4 billion in equity and $25.8 billion in debt for a record-breaking $37.6 billion. The transaction is payable as 60 percent in cash and 40 percent in Vornado shares. If the transaction goes through, Vornado would buy and retain half of Equity's assets located in the major metro areas while Starwood and Walnut will buy the remaining assets.

FPO Issues Initial Guidance for 2007 and Increases Dividend By 9.7%   Businesswire 1-10
    Based on its initial outlook for the year, First Potomac expects to report FFO per diluted share of between $1.77 and $1.88 for 2007. The Company's basic assumptions underlying this guidance include: [1] Increasing portfolio occupancy from 88% at year-end 2006 to 91% to 93% by the end of 2007, with average portfolio occupancy of between 89% and 91% for the year; [2] Property operating expense increases of 3% to 6%. The Company continues to incur costs associated with upgrading the assets it has acquired as part of its value-add strategy, many of which are being expensed rather than amortized; [3] Placing the John Marshall Highway build-to-suit development into service at the beginning of the second quarter of 2007; [4] $175 million to $275 million in primarily value-add acquisitions, which, in the aggregate, are projected to have minimal, if any, impact on 2007 results; [5] G&A expense of $10.5 million to $11.0 million.
    First Potomac also announced that the board of trustees has increased the quarterly dividend by 9.7% for 2007. The dividend of $0.34 per share, which represents an annual dividend of $1.36 per share, is payable on February 9, 2007, to shareholders of record as of January 31, 2007.

EastGroup Properties Announces 2007 Earnings Guidance   PRNewswire 1-11
    EastGroup Properties announced its initial outlook for 2007. FFO per share for 2007 is estimated to be in the range of $2.93 to $3.03. Earnings per share for 2007 is estimated to be in the range of $1.12 to $1.22. These projection assume average occupancy of 94.0% to 96.5% and same property NOI increase of 1% to 4% and floating rate bank debt at an average rate of 6%.


Rating Changes

    On 3-21 Wachovia Securities upgraded ProLogis to outperform from market perform, citing the recent pullback in the shares related to the company's convertible debt offering and its 10% decline from early February. The broker told clients it believes margin improvement will come to fruition through 2009.

    On 1-18 Stifel Nicolaus Upgraded HIW from Hold to Buy.

Dividend Announcements    
    On 3-08 EGP announced that its Board approved a 2.0% increase in its quarterly dividend, raising it to $.50 per share from $.49 per share. This is the fifteenth consecutive year of dividend increases. The dividend is payable on March 30, 2007 to shareholders of record of Common Stock on March 20, 2007.

    On 3-01 KRC announced today that its board of directors declared a regular quarterly cash dividend of $0.555 per common share payable on April 18, 2007 to stockholders of record on March 30, 2007. The dividend is equivalent to an annual rate of $2.22 per share and is a 4.7% increase from the previous annualized dividend level of $2.12.

    On 2-16 AMB said its board has raised the quarterly cash dividend 8.7% to 50 cents per share. The dividend is payable April 16 to shareholders as of April 6th [which means it is a Q2 dividend and is thus not included in the data above].

NOTE: Although the tables above are checked and double-checked for accuracy, and may at times be 100% accurate - do NOT count on that. Please confirm through your own research any numbers on which you are to make a buy, sell or hold decision. Most sites giving this kind of data would say that it's information is for entertainment purposes only. I will not presume that you are that masochistic. And even accurately replicated and freshly retrieved FFO numbers are often stale.

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