Thu, May 14, 4:49 PM
- The team at Wells Fargo finds seven REITs most at risk of a takeover, writes Jake Mooney at SNL Financial. What they have in common are sustained discounts to NAV, market caps less than $5B, and relatively low debt ratios - important because it allows added leverage without violating debt covenants.
- At risk? The higher debt loads following a privatization could be harmful to existing bondholders. Stockholders, of course, might feel differently.
- The seven: Mack-Cali (NYSE:CLI), Education Realty Trust (NYSE:EDR), Equity One (NYSE:EQY), Healthcare Realty (NYSE:HR), Retail Opportunity Investments (NASDAQ:ROIC), Post Properties (NYSE:PPS), and Washington Real Estate (NYSE:WRE).
- In the right environment, why limit candidates to smaller REITs? Stifel's Daniel Bernstein suggests Ventas (NYSE:VTR) could go for the equivalent of a 5% cap rate or $90 per share, given Blackstone paid a 6.2% cap rate for Excel Trust, and Associated Estates sold with a cap rate below 5%. Similar cap rates would produce tasty premiums for HCP, Health Care REIT (NYSE:HCN), Healthcare Realty Trust (HR), and Healthcare Trust of America (NYSE:HTA).
Oct. 9, 2012, 3:57 PMMack-Cali Realty (CLI +2%) agrees to buy certain assets from Roseland Partners for ~$134M, as the REIT looks to diversify its portfolio. CLI will buy Roseland's real estate development and management businesses, as well as interests in six operating multifamily properties, one condo-residential property and four commercial properties. | 1 Comment
CLI vs. ETF Alternatives
Mack-Cali Realty Corp along with its subsidiaries is a self-administered, self-managed real estate investment trust. It provides leasing, management, acquisition, development, construction and tenant-related services.
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