Spirit Realty jumps, Realty Income slumps on $9 bln buyout deal

Spirit Realty Capital

30/10/2023 14:56

(Updates stock activity)
    ** Shares of Spirit Realty  SRC.N  up 7.7% at $34.83, after
hitting over 1-mth high early Mon, as Realty Income  O.N  to buy
the smaller commercial REIT
    ** Meanwhile, Realty Income's stock falls 6.2% to $45.97, a
3-1/2-yr low
    ** O to acquire SRC in all-stock transaction with enterprise
value of ~$9.3 bln
    ** Under deal terms, SRC shareholders to receive 0.762
newly-issued O shares for each SRC share owned
    ** Deal expected to close in Q1 2024; O and SRC shareholders
to own ~87% and ~13%, respectively, of combined firm
    ** Per Reuters calculation, SRC shareholders would receive
about $37.34/sh, which is 15.4% premium to stock's close on Fri
    ** With move on the session, SRC shares down ~13% YTD. Co
now has about $4.9 bln market cap, per LSEG data
    ** O's shares now off ~28% YTD including move on Mon for
current market value of about $32.5 bln
    ** Commercial real estate stocks have been slammed amid
surging interest rates, worsening economic conditions and slow
returns to offices by workers

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))