Kimco Pens $2B Merger Deal With RPT Realty, Boosts Coastal And Sun Belt Markets Footprints
Portfolio Pulse from Lekha Gupta
Kimco Realty Corp (KIM) has agreed to acquire RPT Realty (RPT) in an all-stock transaction valued at around $2 billion. The deal, which includes the assumption of debt and preferred stock, will see RPT shareholders receive 0.6049 newly issued KIM shares for each RPT share. The acquisition will add 56 open-air shopping centers to KIM's portfolio. Post-deal, KIM expects the combined company to have a pro forma equity market capitalization of around $13 billion and a total enterprise value of about $22 billion.
August 28, 2023 | 1:59 pm
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POSITIVE IMPACT
Kimco Realty's acquisition of RPT Realty will significantly expand its portfolio and increase its market capitalization. The deal is expected to be immediately accretive to FFO.
The acquisition will significantly expand Kimco's portfolio and increase its market capitalization. This is likely to be viewed positively by investors, leading to a potential increase in the stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
RPT Realty is being acquired by Kimco Realty in a deal valued at around $2 billion. RPT shareholders will receive 0.6049 newly issued KIM shares for each RPT share.
The acquisition is likely to be viewed positively by RPT shareholders, as they will receive a premium for their shares. This could lead to a short-term increase in the stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100