Dallas, Texas 11/13/2013 (Financialstrend) – The $6.75 billion market capped diversified real estate investment firm Cole Real Estate Investments, Inc. (NYSE:COLE) traces back its operations to 1979 when it operated as Cole Credit Property Trust. Since it began its stint as a publicly traded REIT recently, it has managed to post a 23% increase in its market value in the past 90 days. It has managed to show an increase of close to 12% during trading last month.
The stock came under pressure last week, when it announced results for its just concluded third quarter. It managed to post earnings of $0.23 per share and revenue of $366 million for the same period. The returns from the firm in these testing times for REIT are impressive considering the uncertainty prevailing around interest rates and the hanging dominical sword of Fed taper decision.
The firm has not been content posting healthy returns. It has been trying to leverage the existing volatility and softness in the REIT industry to position itself for growth over the medium term. Cole Real Estate Investments, Inc. (NYSE: COLE) has confirmed that it is exclusive in talks with American Reality Capital Properties (ARCP). Commenting about the negotiations, Cole Chief executive officer Marc Nemer has been quoted as saying, “This is taking the number two and number three net-lease REITs and creating kind of a game-over, category-killer in the sector.” The proposed deal is being negotiated around the $11.2 billion potential valuation of the firm and if the merger / take over does happen, will push the combined entity to the first spot in the “triple-net-lease sector” and will push the current number #1 Realty Income to second place.
Cole Real Estate Investments, Inc. (NYSE: COLE) shares are trading at $13.84 per share as of close of business on November 13 and has managed to generate net income of $96 million over the trailing 12 months.