KKR Acquires Industrial Warehouse in California from Westcore

Global investment firm KKR & Co. (KKR) has acquired an industrial warehouse located in Vista, California, from a San Diego-based commercial real estate investment firm, Westcore. KKR acquired the warehouse through its KKR Real Estate Partners Americas III fund.

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Shares of the company closed 2.4% down on Tuesday at $74.45. (See Insiders’ Hot Stocks on TipRanks)

About the Warehouse

The 27-foot warehouse spans 197,000 square feet and features six grade-level doors and 14 dock-high doors.

Known as Vista Commerce, the warehouse is located on an all-concrete site and is leased to a healthcare diagnostic testing company.

Management Comments

A Director in the real estate group at KKR, Ben Brudney, said, “We are pleased to grow our industrial real estate footprint in Southern California with the purchase of this well-located and fully-leased industrial distribution property.”

About KKR

Headquartered in New York, KKR manages investments across multiple asset classes, including private equity, energy, infrastructure, real estate, credit, and hedge funds. It also offers alternative asset management and capital markets and insurance solutions.

Wall Street’s Take

On December 1, Jefferies (JEF) analyst Gerald O’Hara maintained a Buy rating on the stock with a price target of $92 (23.6% upside potential).

The analyst expects the company to report earnings per share (EPS) of $1.94 in the fourth quarter of 2021.

Overall, the stock has a Strong Buy consensus rating based on 7 Buys and 1 Hold. The average KKR & Co. price target of $88.88 implies 19.4% upside potential. Shares have gained 91.3% over the past year.

Risk Analysis

According to TipRanks’ Risk Factors tool, KKR is at risk mainly from two factors: Finance & Corporate and Legal & Regulatory, which account for 63% and 20%, respectively, of the total 115 risks identified for the stock.

Under the Finance & Corporate risk category, the company has 72 risks, and under the Legal & Regulatory category, there are 23 risks. The details of these risks can be found on the TipRanks website.