Tribune Media Completes Three Real Estate Sales for $430M
The deals cover the iconic Tribune Tower in Chicago, the entertainment company's Los Angeles Times Square property and the Olympic Plant in L.A.
Tribune Media said Wednesday that it has completed the sale of three real estate properties for $430 million. It said the deals include up to an additional $45 million.
The three properties are its iconic Tribune Tower in Chicago, by far its biggest sale, its Los Angeles Times Square entity and its Olympic Plant property. The company expects that the three properties will generate approximately $330 million of net cash proceeds after paying taxes, transfer and legal fees and broker commissions.
Tribune Media, which owns 42 local TV stations and the WGN America network, has been selling off its real estate holdings all year. The entertainment company that was created by the 2014 split of Tribune Co., earlier this year said it would explore asset sales, spinoffs and other strategic alternatives amid a weak stock price.
"We have made considerable progress toward achieving our goal of realizing at least $1 billion of gross proceeds from the sale of some of our most significant real estate holdings," said Tribune Media president and CEO Peter Liguori on Wednesday. "Real estate sales closed from 2014 through today's announcement have generated $576 million of gross cash proceeds."
He added: "Importantly, we estimate the value of our remaining real estate portfolio to be at least $500 million, including properties in Chicago, Southern California, Ft. Lauderdale, and Long Island."
As a result of its nine sales in 2016 to-date, Tribune Media estimates a reduction in rental revenue of $11 million and lower operating expenses of $5 million, which would result in a corresponding decrease in adjusted earnings before interest, taxes, depreciation and amortization of $7 million.