Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(To read more on the multifamily market, click here.)

BIRMINGHAM, AL-In an ongoing repositioning of its portfolio, Colonial Properties Trust isn’t abandoning the retail and office sectors, but is holding the line on what it owns. Going forward, the focus will be on developing multifamily properties.

The locally based company’s target markets for multifamily prospects continue to be Sunbelt states, specifically Florida and Texas, with some investment in South Carolina. In the third quarter, Colonial acquired 1,606 units in Atlanta, Dallas and Phoenix and picked up a percentage interest in a Fort Worth complex. Its only disposition took place in San Antonio.

Colonial has 1,800 apartments under construction in Austin, Gulf Shores, AL, Charlotte, NC and Memphis. “We’re continuing to allocate resources to multifamily acquisitions and developments,” Weston Andress, Colonial’s president and CFO, said during the Q3 earnings call. “Seventy-five percent to 80% of our net income is produced by multifamily assets. We plan to stay in office and retail, but won’t plan to add more resources to that.”

In its multifamily division, Colonial Properties saw a 4.2% increase in same-property NOI for the quarter, representing the 12th consecutive quarter of year-over-year, same-property NOI growth for the division. Additionally, the portfolio’s occupancy is 96.2% for its stabilized properties.

C. Reynolds Thompson III, the company’s CEO, said the current strategy is to harvest the value gained in non-multifamily commercial properties. “Our pre-disposition with regard to commercial development is to build the projects, create the value, then harvest that value through a sale or joint venture,” he added. That value, he continued, will be applied to acquiring and developing multifamily properties.

On the balance sheet side, Q3 funds from operations were $44.2 million in comparison to $47.3 million for Q3 2005. Year-to-date funds from operations total $139.7 million versus $125.6 million at this point last year.

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?



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.