NEW YORK - Cohen & Steers, Inc. (NYSE:CNS) and DLC Management have jointly acquired a two-property open-air shopping center complex in Fayetteville, Arkansas, marking a significant investment in a region experiencing robust growth. The deal, announced today, includes Spring Creek Centre and Steele Crossing, which together offer 403,000 square feet of retail space with a 95% occupancy rate.
The centers host a variety of tenants such as TJ Maxx, Ulta, Best Buy (NYSE:BBY), Old Navy, PetSmart, and Kohl's (NYSE:KSS), and benefit from the traffic generated by nearby Walmart (NYSE:WMT), Home Depot (NYSE:HD), and Target (NYSE:TGT) stores. Strategically located near three major highways, the shopping complexes are poised to capitalize on the increasing population and economic activity in the Northwest Arkansas corridor, the fastest-growing metro area in Arkansas.
According to CoStar Group (NASDAQ:CSGP), the region's population has expanded at a rate 4.5 times the national average over the past five years. Fayetteville has also been recognized by the Milken Institute as the 7th Best Performing City in the United States for its economic and employment growth.
James S. Corl, Head of the Private Real Estate Group at Cohen & Steers, highlighted the area's strong growth and the strategic positioning of the shopping centers to benefit from the migration trends towards more affordable and economically attractive areas. DLC Management, with over 30 years of experience in shopping center operations, brings in-depth knowledge of the properties and local market, having managed Spring Creek Centre and Steele Crossing for over a decade.
The acquisition aligns with the current market trend where open-air shopping centers are experiencing high occupancy levels, the highest in 16 years at 95.7% nationally, as reported by CoStar Group. This reflects the strong fundamentals of the sector, characterized by high demand and limited new supply.
Cohen & Steers is a global investment manager specializing in real assets and alternative income, with a history dating back to 1986. DLC Management is a prominent private retail real estate company with a portfolio that spans across the nation. This strategic acquisition is based on a press release statement and reflects the companies' confidence in the continued growth and appeal of open-air shopping centers.
InvestingPro Insights
As Cohen & Steers (NYSE:CNS) fortifies its position in the retail real estate market with the acquisition of two shopping centers in Fayetteville, Arkansas, investors may find the following metrics and tips from InvestingPro insightful. The company, which has a market capitalization of $3.55 billion, is trading at a P/E ratio of 26.9, suggesting investors value its earnings highly. Adjusted for the last twelve months as of Q1 2024, the P/E ratio stands at 28.74.
InvestingPro Tips indicate that Cohen & Steers has maintained dividend payments for an impressive 21 consecutive years, showcasing its commitment to shareholder returns. Additionally, the company's liquid assets exceed its short-term obligations, indicating a strong liquidity position that can support its strategic acquisitions and operations. The company also boasts a return on assets of 20.66% for the last twelve months as of Q1 2024, reflecting efficient use of its assets to generate earnings.
For investors interested in delving deeper into Cohen & Steers's financials and performance metrics, InvestingPro provides additional tips, including the company's valuation multiples and profitability forecasts. Readers can access more tips by visiting https://www.investing.com/pro/CNS and using the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are 5 more InvestingPro Tips available for Cohen & Steers, which could offer further valuable insights into the company's financial health and market position.
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