Equity One Inc. (EQY), a real estate investment trust (REIT) engaged in the ownership, management, and development of neighborhood and community shopping centers in the U.S., has recently obtained the site approval for the construction of ‘The Gallery at Westbury Plaza’ – a 330,000 square feet retail center in New York.
Equity One will commence development work for the project in 2011, with a grand opening expected in Fall 2012. The Gallery at Westbury Plaza will be the latest addition to Equity One’s growing portfolio of high-quality shopping centers and premier tenants. The retail center will be located adjacent to the ‘Westbury Plaza’ shopping mall it had earlier acquired in November 2009 from Kimco Realty Corporation (KIM) for approximately $103.7 million.
The majority of the shopping centers owned by Equity One are anchored by leading supermarkets, pharmacies and large retail stores. The company has a diverse tenant mix, a hedge against tenant concentration risk, thereby ensuring a steady source of income.
In addition, bulk of the company’s portfolio is located in some of the most densely populated and highest growth areas of the country with high barriers to entry. These include the metropolitan areas around Miami, Fort Lauderdale, West Palm Beach, Jacksonville, Orlando, Atlanta, Georgia, Bostonand New York. Consequently, the shopping centers generate relatively strong sales with solid trade area demographics.
We have a ‘Neutral’ rating on Equity One, which presently has a Zacks #3 Rank translating into a short-term ‘Hold’ rating and indicates that the stock is expected to perform in line with the overall U.S. equity market for the next 1–3 months.
EQUITY ONE INC (EQY): Free Stock Analysis Report
KIMCO REALTY CO (KIM): Free Stock Analysis Report
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