MEMPHIS, TENN. — An affiliate of NexPoint Advisors LP will acquire Memphis-based Jernigan Capital Inc. for $17.30 per share, or approximately $900 million, in an all-cash deal. The transaction is expected to close in the fourth quarter of this year. Under terms of the agreement, Jernigan Capital will discontinue its regular quarterly dividends and does not expect to host a conference call and webcast to discuss its financial results for the quarter ended June 30. Jernigan Capital owns more than 5 million square feet of self-storage assets in more than 20 states. NexPoint is based in Dallas and is an investment adviser to a suite of funds and investment offerings.
LAKELAND, FLA. — Publix’s sales have increased 21.8 percent year-over-year, the company announced during its second-quarter earnings report. As an essential retailer, the Lakeland-based grocer has remained open through the nationwide COVID-19 pandemic, which was declared a national emergency March 13. For its second quarter, which spanned the three months ending June 27, Publix’s sales reached $11.4 billion, an increase from $9.3 billion the same time a year ago. The company estimates its sales in the second quarter increased approximately $1.5 billion, or 16.1 percent, due to the pandemic.
LOS ANGELES — CBRE Group Inc. (NYSE: CBRE) released its financial results for the second quarter, ending June 30, showing a six percent decline in revenue, down to $5.4 billion from $5.7 billion in second-quarter 2019. The COVID-19 pandemic impacted second-quarter results across all major markets, including CBRE spending $25 million in COVID-related costs and a $16 million donation to a COVID relief fund. “The overall impact [of COVID-19] was cushioned by our diverse business mix, particularly the sustained growth of our contractual business over the past decade,” says Bob Sulentic, president and chief executive officer of the Los Angeles-based commercial real estate services firm. “We also benefited from early moves to reduce our expense base, a process that is continuing, and strengthen our financial position and cash-flow generation despite the ongoing challenges from the pandemic.” Across the company’s advisory services, the second-quarter report shows that leasing contracted 43 percent in the United States and property sales fell 51 percent. However, loan servicing revenue increased 15 percent, partially offsetting more cyclical business lines. On the real estate investment front, the second quarter adjusted revenue was $154 million compared to $169 million in second quarter 2019. CBRE’s global workplace solutions fee …
PLANO, TEXAS — At Home, a home décor and furnishings retailer, posted net sales of $515 million in its fiscal second quarter, which ended on July 25, and is reportedly looking to expand its footprint. That figure represents a 42 percent year-over-year increase in comparable store sales. At Home CEO Lee Bird told CNBC on Friday that the company has been expanding its store count by about 20 percent per year over the last seven years, and that it could grow from its current 219 stores to as many as 600. Bird cited the Plano-based retailer’s emergence as an essential retailer and a one-stop shop for a broad range of home goods, as well as the growth of its omnichannel sales platform and the ability to social distance inside its large-format stores, as key drivers of its growth.
NEW YORK CITY AND FREMONT, CALIF. — The list of apparel retailers to file for Chapter 11 bankruptcy grew longer over the weekend as the parent companies of Lord & Taylor and Men’s Wearhouse both filed petitions for Chapter 11 bankruptcy protection in an effort to restructure their debt loads. Le Tote Inc., a New York City-based e-commerce firm specializing in the clothing sector that owns Lord & Taylor, filed its petition in the U.S. Bankruptcy Court for the Eastern District of Virginia. Tailored Brands, the Fremont-based parent company of Men’s Wearhouse and Jos. A. Bank, filed in a district court in Texas. Le Tote acquired Lord & Taylor about a year ago for $100 million from Hudson’s Bay Co. At that time, Lord & Taylor operated about 40 department stores around the country. Approximately half of those stores will now close. In mid-March, Hudson’s Bay Co., the Canadian firm that also owns Saks Fifth Avenue, also sold a 660,000-square-foot office building in Manhattan that had served as Lord & Taylor’s office hub. Amazon bought the property for $1.15 billion to serve as its New York City headquarters. Just two weeks ago, Tailored Brands unveiled a corporate restructuring plan that …
CANTON, MASS. — Dunkin’ Brands Group (NASDAQ: DNKN) reported a total decrease in revenue of 20 percent during the second quarter and announced that it will close about 350 stores worldwide during the second half of the year. These closures follow the company’s announcement to shutter about 450 stores that are housed in Speedway gas stations and convenience marts. Canton, Mass.-based Dunkin’, which also owns Baskin-Robbins, reported that approximately 90 percent of its international locations for both Dunkin’ and Baskin-Robbins were open as of July 25. Dunkin’s stock price opened at $68.61 per share on Friday, July 31, down from $81.58 per share a year ago.
CHICAGO AND BRENTWOOD, TENN. — Ventas, a Chicago-based REIT, has restructured its master lease with Brookdale in response to the challenges presented by the COVID-19 pandemic. Ventas owns 120 Brookdale-managed communities totaling 10,174 units. As part of the restructuring, Brookdale sold five communities that it both owned and operated to Ventas. Brentwood-based Brookdale will continue to operate those properties. Terms of the agreement include a reduction in rents totaling $500 million over the remaining lease term, which ends Dec. 31, 2025. Brookdale surrendered its $47 million security deposit and agrees to pay $115 million in cash to Ventas. In addition, Brookdale issued a $45 million unsecured, interest-only, pre-payable note to Ventas, with an initial interest rate of 9 percent per annum and maturing at the same time as the lease expiration. Lastly, Brookdale issued 16.3 million shares of its stock to Ventas at a value of $3 per share. The transaction represents approximately 8 percent of all Brookdale shares. Centerview Partners served as financial advisor to Ventas. Wachtell, Lipton, Rosen & Katz and Barack Ferrazzano Kirschbaum & Nagelberg LLP are serving as legal counsel to Ventas.
SEATTLE — Seattle-based Starbucks Corp. (NASDAQ: SBUX) reported that the company’s U.S. comparable store sales declined 40 percent, with comparable transactions down 52 percent through its 13-week fiscal third quarter ending June 28. Additionally, the company reported a consolidated net revenue of $4.2 billion, representing a 38 percent decline from last year primarily due to lost sales related to the COVID-19 outbreak. On the shareholder side, the company experienced a generally accepted accounting principles (GAAP) loss per share of 58 cents, down from earnings per share of $1.12 in the prior year. Despite decreased sales and a decline in net revenue, Starbucks opened 130 net new stores in the third quarter, resulting in 5 percent year-over-year unit growth and ending the period with 32,180 stores globally. The company currently operates or licenses 15,243 locations in the United States. As of July 28, approximately 97 percent of Starbucks’ global company-operated stores are open, with 96 percent of U.S. locations and 99 percent of China locations open. Currently 87 percent of the company’s global licensed store portfolio is open, with temporary closures predominantly in airport, college and university locations within the United States and Canada. Starbucks’ stock price closed at $77.42 per …
TORONTO — Slate Retail REIT has reported during its second quarter earnings call that it experienced the best quarter of leasing since its founding in 2014. The Toronto-based company, which owns and operates 46 grocery-anchored shopping centers in the Southeastern United States, reports that it completed 464,326 square feet of lease renewals and 54,365 square feet of new leasing at its 70 total locations. The 518,691 square feet total is a 60 percent jump over second-quarter 2019. The REIT’s portfolio occupancy rate dropped 0.6 percent in the three months ending June 30 to 92.2 percent. Slate also reported that 62 percent of its tenant portfolio is deemed “essential” during the pandemic. These tenants include grocery stores, medical services and financial institutions. Slate was able to collect 89 percent of contractual rent for the second quarter. The company collected 91 percent of rent checks in July. The REIT expects to substantially collect outstanding billings through immediate cash collection or deferral programs. Furthermore, pending approval from the Toronto Stock Exchange (TSX), the company will rebrand to Slate Grocery REIT.
HOUSTON —Midway has launched a commercial leasing and advisory services division. The Houston-based developer has hired Lacee Jacobs to run the new branch of the company, which will focus on creating strategic leasing initiatives for the company’s portfolio of mixed-use properties. Jacobs began her career at Midway and has since worked at CBRE, EDGE Realty and Waterman Steele. Midway is the developer behind mixed-use projects in Houston such as CityCentre and Buffalo Heights.