Valley National Closes Sale & Leaseback Of 26 Properties
Zacks Investment Research | Mar 27, 2019 08:49AM ET
Valley National Bancorp (NASDAQ:VLY) closed the sale-and-leaseback deal for 26 out of the previously-announced 29 properties, for $100.5 million. The properties consisted of 25 branches and one corporate location.
The pre-tax net gain from these 26 properties is nearly $78 million (after transaction-related expenses). Valley National expects to complete the sale and leaseback of the remaining three properties in the second quarter of 2019, subject to due diligence. The company projects pre-tax net gain of more than $3 million from the remaining properties.
At the time of the deal’s announcement this February, Valley National had projected the above-mentioned decisions to be slightly accretive to its earnings over the first full year of the transactions. This will exclude severance charges likely to be incurred by the company.
Further, Valley National’s CFO, Alan Eskow, had stated that the properties identified in the sale-and-leaseback transaction are in sync with the company’s long-term strategic plan, as well as the previously-announced Branch Transformation. The company is aimed at achieving efficiency ratio of less than 51% by 2020 through Branch Transformation.
Valley National’s shares have lost 12.5% over the past six months compared with the Original post
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.