Kimco to acquire RPT Realty in $2 billion all-stock deal

Rithm Property Trust

28/08/2023 12:42

Aug 28 (Reuters) - Commercial real estate investment
trust Kimco Realty  KIM.N  said on Monday it would buy RPT
Realty  RPT.N  in an all-stock transaction valued at about $2
billion.
    RPT Realty shareholders will receive 0.6049 of a
newly-issued Kimco stock for each share held, or $11.34, a 19%
premium to RPT's closing price on Aug. 25. 
    RPT's shares jumped about 15% in premarket trade after the
deal was announced.
    The acquisition of RPT Realty, whose tenants include TJ Maxx
stores, Dollar Tree and Ross Stores, adds to Kimco's portfolio
of grocery-anchored shopping centers in the U.S. 
    The deal will expand Kimco's presence in the Coastal and Sun
Belt markets, CEO Conor Flynn said in a statement.
    The transaction, which is expected to close in the beginning
of 2024, will immediately add to Kimco's funds from operations
(FFO).
    In July, Kimco topped market expectations for second-quarter
revenue, benefiting from higher rental rates and resilient
demand for space in its grocery-anchored shopping centers.    
    

 (Reporting by Juveria Tabassum; Editing by Sriraj Kalluvila)
 ((Juveria.Tabassum@thomsonreuters.com;))