Apr. 29, 2014, 7:05 AM
- Both companies bypass policy of not commenting on market rumors to issue press releases denying having discussions with each other.
- Up 7.3% yesterday on rumored buyout interest, NorthStar (NRF) is off 5.8% in premarket action. Down 3% yesterday, ARCP is up 1% premarket.
- Source (American Realty): Press Release
- Source (NorthStar): Press Release
- Previously: More on possible ARCP/NRF hookup
Apr. 28, 2014, 11:33 AM
- Fresh off its purchase of Cole Real Estate, American Realty Capital (ARCP -0.3%) is reportedly in talks to acquire NorthStar Realty Finance (NRF +9.8%), though sources remind the discussions are preliminary and a deal may not materialize.
- ARCP has a market cap of about $10B and NorthStar's would be $6.5B at the $20 per share takeover price being bandied about (25% above Friday's close).
- Previously: Takeover chatter for NorthStar Realty
Apr. 28, 2014, 10:09 AM
Jan. 23, 2014, 7:26 AM
- About 54% of Cole Real Estate (COLE) investors chose to receive ARCP stock in exchange for their stakes. About 2% chose cash. Approximately 44% did not make an election and - under the terms of the merger agreement - will receive stock, bringing the total to 98%.
- Press release
- Previous coverage of the merger
Oct. 28, 2013, 7:11 AM
- The purchase price of $52.5M is comprised of cash and RCAP common stock, and - following the merger - ICH and its businesses will continue to operate under the "ICH" brand and under the leadership of its current management team. The deal is expected to close in 2014 Q1. The sale price looks to be about a 10% premium to ICH's Friday close.
- The chairman of RCAP is none other than American Realty Capital Properties (ARCP) head Nicholas Schorsch.
- Press release.
Oct. 23, 2013, 11:45 AM
- "This is taking the number two and number three net-lease REITs and creating kind of a game-over, category-killer in the sector," says Cole Real Estate (COLE +8.7%) CEO Marc Nemer of the deal to sell itself to American Realty Capital Properties (ARCP -1.5%) for $11.2B in cash and stock. The combined company will push into first place in size in the popular triple-net-lease sector, surpassing Realty Income (O +0.7%).
- ARCP's acquisition-happy chief Nicholas Schorsch in the past has typically raised private money for non-traded REITs and then sold the portfolios to ARCP in order to cash out his investors, but this is a massive public deal. "How many REITs have the ability to raise both public and private capital," he says. "The ability for us to acquire non-traded REITs, either whole or in part, is only increased" by this Cole deal.
- S&P 500 inclusion next? The investor presentation (slide 8) notes the combined company's market cap will be larger than index constituents Kimco Realty and Macerich.
- Under the impression the CEOs of the two companies hated each other, SNL Financial's Jake Mooney wants the backstory. Earlier this year: Still a non-traded REIT, Cole rebuffs ARCP's buyout attempt for $9.7B.
- Earlier today: The deal announcement.
- Other triple-net players: National Retail (NNN +1.2%), W.P. Carey (WPC +1%), Spirit Realty (SRC +3.2%), EPR Properties (EPR +0.8%).
Oct. 23, 2013, 7:20 AM
- American Realty Capital Properties (ARCP) agrees to buy Cole Real Estate investments (COLE) in a deal valued at $11.2B. The board's of each company have approved the deal and ARCP has already secured $2.75B in financing. Combined, the companies will have an enterprise value of $21.5B.
- Cole, of course, recently came public after fending off a takeover bid from ARCP when it was a non-traded REIT.
- Cole owners will have the option of receiving 1.0929 shares of ARCP stock for each share they own, or $13.82 per share in cash. The stock offer is valued at $14.59 per share based on last night's ARCP close of $13.35. Cole last night closed at $12.82, so the offer is a 13.8% premium. The transaction is expected to close in 2014 Q1.
- ARCP 2014 FFO per share guidance is hiked to $1.13-$1.19 in lieu of the merger. Also among post-merger benefits: The annual dividend will be $1.00 (vs. $0.96 now), $70M of expense synergies, increased institutional coverage and possible inclusion in the S&P 500.
- COLE +2% to $13.08 premarket.
- Press release.
Jul. 8, 2013, 7:45 AM
Jul. 2, 2013, 7:26 AMAmerican Realty Capital Properties (ARCP) continues down the acquisition trail, agreeing to purchase non-traded REIT ARCT IV in a deal valued at $3.1B. ARCT IV shareholders can elect to receive 2.05 shares of ARCP for each share of ARCT IV, or $30/share in cash. Post-deal, ARCP bumps its 2014 AFFO guidance to $1.19-$1.25/share, and boosts its annual dividend by $0.03 to $0.35/share. Premarket action has the stock up 91%, but it's one trade for 100 shares. (PR) | 2 Comments
Jul. 2, 2013, 6:49 AM
May. 31, 2013, 9:37 AMAmerican Capital Realty (ARCP +0.7%) stays busy on the acquisition trail, agreeing to buy an $807M portfolio of 471 net lease properties (all leased by restaurants from Jack in the Box to IHOP to Applebee's and a bunch in-between) from GE Capital. Once closed in Q2, the company will have already exceeded its plan for $1.1B in acquisitions for all of 2013, with the cap rate in excess of 7%. (PR) | Comment!
May. 28, 2013, 3:38 PMMore on the American Realty Capital (ARCP +0.7%) purchase of CapLease (LSE +20.8%): The deal continues the trend of consolidation in the net lease sector, says Stifel's Josh Barber, noting ARCP itself is the product of recent merger. ARCP raised its FY13 guidance $0.11 to $1.19/share and will up its dividend $0.03 to $0.94/share after the deal closes. ARCP was recently rebuffed in its effort to purchase Cole Credit Properties Trust III. | Comment!
May. 28, 2013, 9:38 AM
Apr. 11, 2013, 9:49 AMAmerican Realty (ARCP +0.4%) withdraws its $9.7B proposal to buy Cole Credit Property Trust III after the latter twice rebuffed ARCP's approaches. That was despite the company raising its bid to $12.50/share in cash or $13.59 in stock from $12 in cash or stock. ARCP is also backing out after Cole Credit completed a merger with its external adviser, Cole Holdings. (PR) | 4 Comments
Mar. 29, 2013, 5:31 AMARCP (ARCP) gets a boost in its $9.7B attempt to acquire Cole Credit Property Trust after Cole shareholders sue to block the firm's purchase of its external adviser, Cole Holdings. The investors argue that CCPT Chairman Christopher Cole is trying to force the deal through without a shareholder vote. | Comment!
Mar. 22, 2013, 9:10 AMARCP responds in great detail after CCPT III rejects its $5.7B buyout offer, calling Cole's letter "a distraction filled with many inaccuracies and omissions ... rather than engaging ARCP's board in a constructive manner, Cole has instead chosen to disseminate false or misleading information." ARCP is up 5.8% since the Tuesday offer. | 8 Comments
ARCP vs. ETF Alternatives
American Realty Capital Properties Inc is a self-managed real estate company that acquires, owns and operates single-tenant, free-standing commercial real estate properties mainly subject to long-term net leases with high credit quality tenants.
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