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Welltower logs results; Toys R Us planning another 200 US store closures

Commercial real estate

* Welltower Inc. disclosed fourth-quarter 2017 normalized funds from operations attributable to common stockholders of $380.3 million, or $1.02 per share, a fall of 5.3% in the aggregate from $401.5 million, or $1.10 per share, in the 2016 fourth quarter.

* Bankrupt retailer Toys R Us Inc., reported in January to be closing up to 182 U.S. stores, is now planning to close another 200 stores following a disappointing holiday sales season, according to The Wall Street Journal, which cited people familiar with the matter. The new round of closures would nearly halve the number of Toys R Us stores in the U.S. compared to before it declared bankruptcy in September 2017, the publication noted, citing the people.

The number of closures could change as discussions are ongoing, the publication noted, citing the people.

* JBG SMITH Properties has drawn up new plans for the 1700 M St. NW office development opposite the National Geographic Museum in northwest Washington, D.C., the Washington Business Journal reported. The company picked up the property when it merged with Vornado Realty Trust's spinoff.

The new plans feature a four-story base building with two separate towers, totaling 315,435 square feet. Vornado, which had already demolished the old office building on the site, had planned for the asset to span 334,000 square feet.

JBG is seeking anchor tenants to pre-lease the space and has also enlisted Cushman & Wakefield to market the asset as an investment sales opportunity, the report noted. The project would require an additional 12 months for construction documentation to be completed, according to the report.

* JPMorgan Chase & Co. plans to replace its 1.5 million-square-foot headquarters building at 270 Park Ave. in Midtown Manhattan, N.Y., with a 2.5 million-square-foot facility. The Journal reported that the new building is expected to be roughly 70 stories tall and will house 15,000 employees, consolidating the bank's various offices around the borough.

The present facility, designed in the 1950s, has been renovated several times. It houses roughly 6,000 employees, the Journal noted. Construction is expected to begin in 2019 and last roughly five years. The larger project is spurred by the city's Midtown East Rezoning plan, which was passed in 2017 to allow redevelopment of the area's older buildings, the Journal noted.

* Capstone Equities and Highgate are buying the W Hotel New York at 541 Lexington Ave. in Manhattan from Host Hotels & Resorts Inc., The Real Deal reported, citing a source with close knowledge of the deal. Host Hotels recently said the $190 million sale is expected to close in the second quarter. The company did not disclose the buyer.

The 697-room hotel was previously reported to be nearing a roughly $209 million sale to Capstone and HEI Hotels & Resorts. Citing the unnamed source, The Real Deal noted that Capstone chose to partner with Highgate instead.

* Prologis Inc. signed a 200,000-square-foot lease with Swiss travel retailer Dufry at its Beacon Lakes business park near Doral, Fla., the South Florida Business Journal reported. The lease is for a built-to-suit warehouse and office facility that is expected to break ground by the end of the first quarter, with completion slated for the first quarter of 2019.

Dufy currently occupies roughly 160,000 square feet at Prologis' International Corporate Park and will leave the facility for the move.

* Greenland USA, the U.S. arm of China-based Greenland Group, is looking to sell the Metropolis Tower 3 condominium project at the Metropolis complex in downtown Los Angeles, The Real Deal reported. The 56-story, 736-unit tower is under construction and does not have a listing price, the report noted, citing CoStar.

A buyer could complete the project as luxury rental apartments, the report noted. The scheme's 308-unit Tower 1 was roughly 80% sold as of December 2017 while the 514-unit Tower 2 is in presale.

The company recently listed the complex's 350-room Indigo Hotel for sale with a $280 million price tag.

* The North Miami Beach, Fla., City Council approved CK Privé Group's roughly one million-square-foot Uptown Biscayne project, the South Florida Business Journal reported. The 16-story development would comprise 245 apartments, more than 170,000 square feet of retail space, roughly 35,000 square feet of office space and more than 1,000 parking spaces.

Construction is expected to commence in 2018, the report noted, citing the developer.

* Maven Real Estate Group is mulling a 250-room hotel conversion of the Rand Tower office building in Minneapolis, Minn., the Minneapolis / St. Paul Business Journal reported. The project is estimated to cost $59.5 million, the report noted, citing an application for historic tax credits that Maven submitted to the National Park Service.

The plan is subject to city approvals. The 26-story tower at 527 Marquette Ave. was built in 1929 and has roughly 145,600 square feet of class B office space. The vacancy rate of class B office space in the city's downtown market was 19% at the end of 2017, the report noted, citing Colliers International Minneapolis-St. Paul.

After the bell

* Realty Income Corp. disclosed FFO available to common stockholders for the fourth quarter of $171.0 million, or 61 cents per share, a 14.4% decline in the aggregate from $199.8 million, or 77 cents per share, in the 2016 fourth quarter.

* Aspen REIT Inc. postponed its IPO, a plan that would have made it the first single-asset real estate investment trust to list on a national securities exchange in the U.S.

* The board of lodging and entertainment-focused company The Marcus Corp. approved a 20.0% increase in the company's quarterly cash dividend to 15 cents per share.

* Shares of LaSalle Hotel Properties were down nearly 10% on Feb. 21 after the company revealed that it is exploring its dividend options, including a potential payout reduction.

* European real estate investment manager AXA Investment Managers - Real Assets and U.S. commercial real estate operator Bixby Land Co. Inc. set up a new joint venture to purchase up to $400 million of logistics properties in the Western U.S. over the next two to three years.

The day ahead

Early morning futures indicators pointed to a higher opening for the U.S. market.

In Asia, the Hang Seng fell 1.48% to 30,965.68, and the Nikkei 225 was down 1.07% at 21,736.44.

In Europe, around midday, the FTSE 100 was down 0.92% at 7,214.69, and the Euronext 100 had slipped 0.48% to 1,018.76.

On the macro front

The jobless claims report, the leading indicators report, the EIA natural gas report, the Kansas City Fed Manufacturing Index, EIA petroleum status report, the Fed balance sheet and the money supply report are due out today.

The Daily Dose is updated as of 7:30 a.m. ET. Some external links may require a subscription. Articles and links are correct as of publication time.