In some ways, the move reflects the still-sluggish market forshares of some real estate investment trusts, analysts say. Thoughthe REIT market has recently strengthened, many still sell for farless than the underlying value of the properties in theirportfolios.
To build shareholder value, Pacific Gulf began selling many ofits assets to individual buyers earlier this year. In June, itannounced plans to sell its industrial holdings for $929 million toCalifornia-based CalWest Industrial Properties. It also agreed tosell one-third of its apartment holdings for $93 million to threebuyers in August.
The strategy has been working. Pacific Gulf's shares closedFriday at $26.81 a share, not far off its 52-week high of $27.93 ashare. Its stock was selling for only about $19 a share before itbegan selling off its assets.
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