Dane Bowler • 77 Comments
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%).
Jan. 16, 2013, 12:06 PM
Jan. 7, 2013, 6:54 AM
The merger deal likely in trouble, Realty Income (O) sweetens its offer to include an immediate cash payment to American Realty Capital (ARCT) investors of $0.35/share (2.9% of the stock price). Helping to fund the $55.5M payment are the Chairman and CEO of ARCT. Upon closing, Reality Income announces a dividend increase of $0.35/share, a near tripling of the expected post-merger bump. (PR)| Jan. 7, 2013, 6:54 AM | 6 Comments
Jan. 2, 2013, 8:36 AM
It remains to be seen whether this deal closes - American Realty Capital (ARCT) reaffirms its recommendation to merge with Realty Income (O). The move comes in response to ISS urging shareholders to vote against the merger. The ISS analysis "fails to take into consideration the technical nature of the net lease REIT sector and certain key REIT industry metrics. A vote is scheduled for Jan. 6. (PR)| Jan. 2, 2013, 8:36 AM | 3 Comments
Sep. 6, 2012, 1:03 PM
More on the Realty Income (O) purchase of American Realty (ARCT): The purchase reflects Realty Income's desire to improve tenant quality, says Joshua Barber, but at the cost of getting into new property types (non-retail). He has his doubts about the transaction improving on an "historically strong operating profile."| Sep. 6, 2012, 1:03 PM | 4 Comments
Sep. 6, 2012, 7:31 AM
Realty Income (O) agrees to purchase American Realty Capital Trust (ARCT) in a stock deal currently valued at $2.95B. ARCT stockholders will receive 0.2874 Realty Income shares for each share they own, $12.21 based on yesterday's close. ARCT +4.5% premarket. (PR)| Sep. 6, 2012, 7:31 AM | 4 Comments