INDUS Realty Snaps Up Logistics Building In Pennsylvania For $11.7M


INDUS Realty Trust (INDT) has acquired an Industrial/logistics building in Pennsylvania for a consideration of $11.7 million excluding transaction costs.

INDUS chiefly engages in Industrial/logistics properties and owns 42 buildings in addition to more than 3,400 acres of undeveloped land. It funded this acquisition with cash in hand. The acquired facility is a fully-leased 127,500 square foot Industrial/logistics building.

INDUS Realty President and CEO Michael Gamzon said, “We are thrilled to expand our presence in the core Lehigh Valley market with a building that is leased to a credit tenant. We believe this acquisition provides the opportunity to create significant value over time as the current in-place rent is below market and the excess land on the site provides options for potential future improvements.” (See INDUS Realty stock analysis on TipRanks)

Gamzon added, “The building complements our existing 1.3 million square foot Lehigh Valley portfolio and is located in the same corporate park as our Ambassador Drive building.”

On May 13, Citigroup analyst Emmanuel Korchman initiated coverage of the stock with a Hold rating and a price target of $70 (13.3% upside potential).

Korchman believes INDUS stock will be a beneficiary of favorable trends in the Industrial sector and opportunities for internal growth.  However, the analyst foresees threats from execution risk of the internal project pipeline and higher competition from bigger players.

Consensus among analysts is a Moderate Buy based on 2 Buys and 1 Hold. The average analyst price target of $71.33 implies 15.4% upside potential to current levels. Shares have gained about 70% over the past year.

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