CenterPoint Seeks Opportunities in Slowdown

OAK BROOK, IL-While it remains debatable whether the economy is indeed in a slowdown or entering a recession, CenterPoint Properties Trust wouldn’t be upset if the worst-case scenarios became reality. The largest industrial property owner in the Chicago market with 32 million sf reports a 12.7% increase in funds from operations in the first quarter of 2001, when the region enjoyed continued health.

“Over our 15 years as a public company, we have achieved our highest returns during economic downturns,” says President and CEO John Gates. “CenterPoint is well-positioned to repeat this during the current period as well.”

CenterPoint has cash to take advantage of opportunities, officials say, with a 4.2-1 debt coverage ratio and $286.5 million available in lines of credit.. During the first quarter, the REIT’s acquisitions were at a capitalization rate of 12.2% while its new developments offered a 13.1% initial rate of return.