Why RPT Realty's Merger Deal With Kimco Is A Win-Win: Analyst On AFFO Estimates And Takeout Price
Portfolio Pulse from Lekha Gupta
RPT Realty's merger deal with Kimco Realty Corp has been viewed as a win-win by analysts, despite some downgrading RPT following the announcement. The $2 billion deal includes the assumption of debt and preferred stock, and offers a 19% premium to RPT's closing share price on August 25, 2023. Analysts believe the deal is positive for RPT as the stock is worth below the implied takeover price. However, they also predict RPT will not be able to cover its dividend in 2024 based on updated AFFO estimates.
August 29, 2023 | 7:10 pm
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POSITIVE IMPACT
Kimco Realty Corp's acquisition of RPT Realty demonstrates confidence in the ongoing retail real estate recovery and potential in RPT's portfolio.
The acquisition of RPT Realty by Kimco Realty Corp is seen as a demonstration of Kimco's confidence in the ongoing recovery of the retail real estate sector. This could potentially boost investor confidence in Kimco and positively impact its stock performance.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
RPT Realty's merger with Kimco Realty Corp is seen as positive, despite downgrades. The stock is worth below the implied takeover price, and it's predicted RPT won't cover its 2024 dividend.
The merger deal is seen as a positive outcome for RPT Realty, despite some analysts downgrading the stock. The deal offers a premium to RPT's closing share price, which is seen as beneficial for the company. However, there are concerns about RPT's ability to cover its dividend in 2024, which could potentially impact the stock's performance.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100