Global investment firm KKR & Co. Inc. (KKR) recently announced the sale of its infill and light industrial portfolio to Oxford Properties for $2.2 billion. The deal is likely to close in the coming months. Oxford Properties focuses on real estate investment, development and property management.
Following the news, shares of the company declined 2.9% on Tuesday. However, it pared its losses slightly to close at $63.78 in extended trade.
The real estate portfolio sold by KKR spans an area of about 14.5 million square feet and 149 distribution buildings. The portfolio, which is located in major industrial U.S. areas, have high barriers to entry with a heightened focus on high growth markets.
The Partner and Head of Real Estate Acquisitions at KKR, Roger Morales, said, “Four years ago, we set out to create a large stabilized portfolio that would benefit from secular changes in the logistics sector largely driven by e-commerce and consumer preference changes. Today’s transaction not only demonstrates how this strategy is performing for our investors, but also reflects the tremendous market opportunity we continue to see in industrial real estate.” (See KKR stock chart on TipRanks)
Recently, Deutsche Bank analyst Brian Bedell upgraded the stock to a Buy and raised the price target to $75 from $69, which implies 18.4% upside potential from current levels.
Consensus among analysts is a Strong Buy based on 7 Buys and 1 Hold. The average KKR price target of $74.25 implies 16.9% upside potential from current levels.
KKR scores a 9 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations. Shares have gained 77.8% over the past year.
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