PDL Community Bancorp on Dec. 31 disclosed that PFS Service, the service company of its subsidiary Ponce Bank, has entered into a sale and leaseback contract for the real property located in Union City, New Jersey.
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PDL Community Bancorp (PDLB) is the financial holding company for Ponce Bank and Mortgage World Bankers. The purchase price for the property is $2.4 million.
The carrying value of the property stood at $512,000 as of Dec. 22, 2020. Additional expenses were expected during the transaction process.
As part of the contract, Ponce Bank will lease back the property for an initial term of 15 years with four optional terms of five years each under the leaseback agreement. The initial base annual rent is estimated at $145,000 subject to a yearly rent hike of 1.5%.
“2021 will continue to be a year of investing – in the safety of our people and the future of our organization and our communities – with the clear goal of enhancing stakeholder values,” commented PDL Community Bancorp CEO Carlos P. Naudon. (See PDLB stock analysis on TipRanks)
Last month, Compass Point analyst Laurie Havener raised the stock’s price target to $12 (14.2% upside potential) from $11 and reiterated a Buy rating. Shares have lost 29% in 2020.
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