ORLANDO-Commercial Net Lease Realty Inc. has completed a $9.4-million equity position in Orange Avenue Mortgage Investments, formerly known as CNL Commercial Finance Inc. CNLR exercised its option to acquire a 79% stake in the company, the company says.
CNLR received the option in 2000 when Orange Avenue Mortgage Investments was formed, CNLR chief financial officer Kevin B. Habicht tells GlobeSt.com. "We are very pleased" with the deal because "it creates compelling value for us," Habicht says. "We had provided a little seed capital to the [California-based] firm in 2000 but had no equity interest in that company until now."
Orange Avenue recently sold its loan origination, securitization and servicing operations and the majority of its assets and liabilities.
CNLR also announced first-quarter net earnings of $25 million, or 47 cents per share, versus $14.8 million, or 29 cents per share, for the comparable 2004 period. Revenues increased 12% to $33.1 million. Funds from operation rose to $19.6 million, or 37 cents per share, versus $18.4 million, or 36 cents per share, in first quarter 2004.
"Our increased first-quarter revenue over the same period last year results directly from the efficient execution of streamlining our retail property sector activities," says Craig Macnab, CNLR's president and CEO. "We have been able to increase our stable rental revenue stream, and our acquisitions and development teams continue building relationships that position us to quickly act on advantageous opportunities and generate repeat business."
In its investment portfolio, CNLR acquired 21 properties for $47 million in 2004; purchased three properties for $18.6 million in its development inventory portfolio; and acquired six properties for $6 million in the exchange inventory portfolio.
On the sale side, CNLR sold four investment properties for $31.8 million and a gain of $9.8 million; sold two development inventory properties for $5.8 million and a gain of $1.4 million; and sold three exchange inventory properties for $9.3 million and a gain of $1.1 million. The investment portfolio occupancy was 97.5% as of March 31, 2005 versus 96.7% at March 31, 2004.
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