Essex and BRE come to terms

Essex Property Trust (ESS) agrees to buy BRE Properties in a deal currently valuing BRE at $56.21 per share. Owners of each BRE share will receive $12.33 in cash and 0.2971 shares of newly created Essex common stock.

Combined, the two companies will have a total market cap of about $15.4B. Essex equity holders will hold about 63% of the combined company's equity.

"This transaction will create a must-own sharpshooter REIT focused on West Coast apartments, and we believe this is a great outcome for our company," says BRE CEO Constance Moore. BRE turned down an offer for $60 per share from Land & Building earlier this year.

Essex anticipates the deal will improve core FFO by about $0.05-$0.08 annually, and the current annual dividend of $4.84 is expected to be maintained.

A conference call is set for 10 ET.

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