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Key Takeaways
- Realty Revenue Corp., a industrial property actual property funding belief (REIT), stated it might purchase one other REIT, Spirit Realty Capital, for $9.3 billion in an all-stock deal.
- The settlement offers Spirit shareholders 0.762 share of newly issued Realty Revenue shares for every Spirit share they personal.
- The acquisition value represents a 15.4% premium to Spirit’s closing value Friday.
Realty Revenue Corp. (O), a industrial actual property funding belief (REIT), stated it might purchase a single-tenant specialised REIT, Spirit Realty Capital (SRC), in an all-stock transaction valued at about $9.3 billion.
Below the phrases of the settlement, Spirit buyers will obtain 0.762 newly issued Realty Revenue share for each Spirit Realty share they personal. That might come out to $37.34 per share, a 15.4% premium to the inventory’s closing value Friday. Realty Revenue buyers will personal 87% of the mixed agency, with Spirit Realty shareholders holding the remainder.
The merger is anticipated to create an enterprise worth of roughly $63 billion for the mixed firm, which Realty Revenue stated would improve the REIT’s “dimension, scale, and diversification to develop its runway for future development.”
Realty Revenue Chief Government Officer (CEO) Sumit Roy stated that the acquisition will create “fast and significant earnings accretion,” anticipated to be greater than 2.5% to the corporate’s annualized adjusted funds from operations per share.
Realty Revenue famous that it would not be counting on capital markets to finish the deal, and that it’s going to assume present debt with “low, in-place charges.” The transaction is anticipated to shut within the first quarter of subsequent 12 months.
The information despatched shares of Realty Revenue falling Monday to their lowest stage because the starting of the pandemic in 2020. Spirit Realty Capital shares rose nearly 8%.
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