S&P affirms CenterPoint Properties ratings

Standard & Poor's said it affirmed its BBB corporate credit rating on CenterPoint Properties Trust and affirmed its BBB senior unsecured rating and BBB- preferred stock rating.

The outlook is stable.

"The ratings continue to reflect the success of CenterPoint's unique sharpshooter business strategy. The company owns and operates a portfolio of 191 industrial properties (32 million square feet) almost exclusively within the Chicago metropolitan area, among the largest and most diverse U.S. industrial markets," said credit analyst Elizabeth Campbell.

"Management's deep local market knowledge and presence enables the company to actively manage its historically more stable (and lower yielding) core portfolio while also aggressively pursuing less predictable (but potentially higher-yielding) development and redevelopment projects.

"However, credit weaknesses include geographic concentration in a moderately weak market (heightening near-term leasing risk), a meaningful amount of less predictable income from gains on asset sales (resulting in below-average debt coverage measures when analytically excluded from funds from operations), and a greater tolerance for floating-rate debt."

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