TAMPA, Fla., Aug. 05, 2020 (GLOBE NEWSWIRE) -- HCI Group, Inc. (HCI) - Get Report, an InsurTech company with operations in insurance, software development and real estate, has completed the previously announced sale of its headquarters property and a nearby right of way to the State of Florida as part of a planned road improvement project. The headquarters property, known as "Cypress Commons," was part of a portfolio of Florida commercial properties owned and operated by HCI's real estate division, Greenleaf Capital. HCI acquired the property in 2010.
The combined compensation to HCI for the properties was $47.5 million. After transaction costs, including legal expenses and expert fees, HCI received $44 million from which $7 million was used to retire mortgage debt on the headquarters property.
The properties were valued on HCI's books at approximately $7 million. Accordingly, HCI will report a pre-tax gain on the sale of approximately $37 million. After tax, that gain should increase HCI's book value by approximately 15% or $3.58 per share.
As part of the sale agreement, HCI has the option to occupy the headquarters property for up to three years after the sale. During this time, Greenleaf will continue to manage the property, which has numerous other tenants.
Management Commentary"This sale demonstrates the value of our judicious investments in real estate," said HCI Group Chief Executive Officer Paresh Patel. "In this case, we not only had use of the property for many years, but during those years, we also quietly and consistently added shareholder value on an income tax efficient basis. With this sale, we added significant cash to our balance sheet, paid down debt and increased book value. While we are disappointed to give up ownership of our headquarters, we are gratified the property will go to improving transportation in the Tampa Bay area."
About HCI Group, Inc.HCI Group, Inc. is an InsurTech company with operations in insurance, software development and real estate. HCI's leading insurance operation, TypTap Insurance Company, is a rapidly growing, technology-driven insurance company, which provides homeowners' insurance and flood insurance primarily in Florida. TypTap's operations are powered in large part by insurance-related information technology developed by HCI's software subsidiary, Exzeo USA, Inc. HCI's largest subsidiary, Homeowners Choice Property & Casualty Insurance Company, Inc., provides homeowners' insurance primarily in Florida. HCI's real estate subsidiary, Greenleaf Capital LLC, owns and operates multiple properties in Florida, including office buildings, retail centers and marinas.
The company's common shares trade on the New York Stock Exchange under the ticker symbol "HCI" and are included in the Russell 2000 and S&P SmallCap 600 Index. HCI Group, Inc. regularly publishes financial and other information in the Investor Information section of the company's website. For more information about HCI Group and its subsidiaries, visit www.hcigroup.com.
About Greenleaf CapitalGreenleaf Capital, LLC is the real estate division of HCI Group, Inc. Greenleaf owns and manages numerous Florida real estate properties, including office buildings, retail shopping centers and waterfront properties. Greenleaf Capital owns and manages over 500,000 square feet of space on over 60 acres of land. For more information, please visit www.gleafcapital.com.
Company Contact:Rachel Swansiger, Esq. HCI Group, Inc.Tel (813) 405-3206 firstname.lastname@example.org
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