IPC Sells $94M in US Centers

Net of debt, closing adjustments and sales costs, the cash proceeds to the REIT will be $43 million. The estimated pre-tax profit is $13 million.

The properties being sold include Hurstbourne Forum Shopping Center, a 134,963-sf property in Louisville that is 97.8% leased; Brittany Retail Center, a 214,148-sf property in Witchita, KS, that is 78.3% occupied; Normandie Village, a 91,306-sf property in Witchita that is 84.5% occupied; Comotara Center, a 55,488-sf property in Witchita that is 100% leased; and Walpole Mall, a 282,000-sf property in East Walpole, MA, that is 95.6% leased.

The pending sale was announced along with the company's third quarter earnings report. IPC says it has only one retail property left, a 94,000-sf mall that is being redeveloped as part of the company's 400,000-sf Hurstbourne Town Center development.

IPC says its distributable income for the third quarter rose 12.9% to $9.5 million in the third quarter. On a per unit basis, distributable income fell to $0.224 from $0.23 due to higher utility costs in its same-store portfolio and reduced occupancy caused by a tenant bankruptcy and a lease expiration. Net operating income was $21.8 million and rental revenue was $40.1 million in the third quarter. The totals are 12.9% and 24.2% higher, respectively, than the third quarter of 2004.

Earlier this year, ABFS, a 235,000-sf tenant in its 60% owned 1.5 million-sf Wanamaker Building in Philadelphia went bankrupt and vacated its premises. IPC received $4.2 million from a letter of credit in the second quarter. In August, Sony's 123,000-sf lease in its Tice property expired without a renewal. IPC says it has so far released 40% of the space, though some of the leases have not yet commenced.