Sep. 16, 2014, 8:53 AM
- The cash and stock deal currently values Glimcher Realty Trust (NYSE:GRT) at $14.20 per share (vs. last night's close of $10.59). Glimcher owners will receive $10.40 in cash and 0.1989 of a share of Washington Prime (NYSE:WPG) for each share of GRT they own.
- The merged company - to be named WP Glimcher - will have a portfolio of 119 properties and 68M square feet of gross leasable space.
- Alongside this deal, Simon Property Group (NYSE:SPG) - which just spun off Washington Prime - will buy Glimcher's Jersey Gardens in Elizabeth, NJ and University Park in Ft. Worth, TX for $1.09B in cash.
- The purchase is expected to be accretive to WPG's normalized FFO per share, and the current annualized payout of $1 per share should be maintained.
- Current Washington Prime CEO Mark Ordan will become Executive Chairman of the combined company, and current Glimcher CEO Michael Glimcher will be the new company's Vice Chairman and CEO.
- The deal is expected to close early next year and WP Glimcher will trade on the NYSE under the ticker symbol WPG.
- Conference call at 10 ET
- Source: Press Release
- GRT +31.2% to $13.90 premarket
WPG vs. ETF Alternatives
WP Glimcher Inc is aself-administered & self-managed REIT. Itis engaged in the ownership, development & management of retail real estate properties including retail operations, such as malls & strip centers. It owns & manages 97 shopping centers.
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