Shares in Strategic Hotels & Resorts rose 3.7 percent this morning after the company posted better-than-expected first-quarter results and boosted its outlook for the rest of the year. The Chicago-based real investment trust (REIT) reported comparable funds from operations (FFO) of $56.3 million, or 20 cents per share, in the quarter, up from $12.2 million, or 6 cents, a year earlier and beating consensus analyst estimates of 10 cents, according to Bloomberg. FFO—which eliminates the impact of items like depreciation from net income—is a closely watched performance metric by REIT investors. Strategic’s revenue rose to $325.3 million in the quarter, up 67 percent from a year earlier, lifted mainly by acquisitions. Strategic, whose local hotels include the Fairmont near Millennium Park and the InterContinental on Michigan Avenue, also raised its forecast for most key financial metrics. It now expects to report comparable FFO of 85 to 93 cents per share in 2015, up from its previous estimate of 77 to 85 cents. Strategic shares were up 43 cents, or 3.7 percent, at $12.21 in morning trading.
Chicago-based real estate investment advisory firm Heitman said it raised about $500 million, more than its $400 million goal, for a fund that buys properties in need a turnaround or repositioning. Including borrowed money, the fund, Heitman Value Partners III, will have the capacity to invest in about $1.5 billion of real estate over the next three years, Heitman said in a statement. The fund, which has already invested about 40 percent of its equity, will focus on properties “that require some type of physical, operational, or financial transformation,” Heitman said.
Terraco, a local developer, will present its plans for a major retail-apartment project in Logan Square at a May 7 community meeting, according to the website of Ald. Scott Waguespack (32nd), who plans to host the meeting. Wilmette-based Terraco wants to build 110,000 square feet of retail space and about 200 apartments on the Discount Megamall property at 2500 N. Milwaukee Ave. The meeting will start at 6:30 p.m. at the Megamall property, according to the alderman’s website.