X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

NEW YORK CITY-The triple-B minus rating of Arden Realty has been affirmed by Standard & Poor’s, based here, as was the triple-B minus rating of the firm’s senior unsecured notes. The company is a Los Angeles-based umbrella partnership REIT that owns and manages 142 office properties totaling 18.5 million sf. The largest office property owner in Southern California, it has a market share of approximately 6%.

S&P notes that Arden’s portfolio consists of well-located, mostly class B/B+ buildings in submarkets that have benefited from positive economic and supply/demand conditions. Although the company has pursued a moderate financial course, its financial flexibility is limited by a portfolio with slightly under 50% of its net operating income encumbered by mortgage debt. However, Arden appears to be committed to reducing its encumbrance level through periodic repayment of secure debt and growth of its core portfolio net operating income.

The stable rating is based, in part, on S&P’s judgment that the company’s portfolio will benefit from embedded internal growth resulting from below-market rents on expiring leases and improved portfolio occupancy.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt
Live Chat

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.