What made real estate investment trust RPT stock jump 20% on Monday?

August 28, 2023 09:18 AM PDT | By Invezz

What made real estate investment trust RPT stock jump 20% on Monday? — Image source: Invezz

Kimco deal values RPT stock at a premium

The all-stock deal that is expected to complete in early 2024 translates to $11.34 per share or 0.6049 shares of Kimco Realty for each share of RPT.

Boards of both companies have already approved the transaction. Conor Flynn – the Chief Executive of Kimco Realty said in a press release today:

This transaction presents opportunity for us to deepen our presence in key Coastal and Sun Belt markets. Approx. 70% of RPT’s portfolio aligns with our key strategic markets.

Kimco expects the merger to immediately boost its funds from operations. Shares of the commercial real estate investment trust are also in the green on Monday.

Kimco will add 56 shopping centres to its portfolio

Note that the announced agreement is subject to customary closing conditions including shareholders’ approval. According to Brian Harper – the Chief Executive of RPT Realty:

We believe aligning with Kimco is in the best interest of our stakeholders, given the multiple synergies that can be realised as a combined company.

Kimco shareholders will own 92% of the joint company that is projected to command a market cap of about $13 billion. Its portfolio will add another 56 open-air shopping centres after the deal closes.

Last month, Kimco Realty Corp said its same-property net operating income went up 2.3% on a year-over-year basis in the second quarter of this year.

The post What made real estate investment trust RPT stock jump 20% on Monday? appeared first on Invezz.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media LLC (Kalkine Media, we or us) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.