Kite Realty Group’s Post

We are pleased to announce the successful completion of our merger with LXi REIT plc.   The Merger creates the UK's leading triple net lease REIT with a highly efficient and internally managed structure and a well capitalised balance sheet. Our £6.2 billion portfolio is aligned to structurally supported sectors of logistics, healthcare, convenience, entertainment and leisure with a strong exposure to assets that are mission critical to occupiers.    The Company's sector leading WAULT of 19 years on FRI leases and 99% occupancy provides a strong platform for income longevity and growth with a high exposure to contractual rental uplifts as well as reversionary open market reviews.   Andrew Jones, Chief Executive of LondonMetric, commented: "The Merger is a transformational deal that creates the UK's leading triple net lease REIT with full occupancy and exceptional income longevity and certainty of income growth. The new larger business will deliver better liquidity, material economies of scale, substantial cost savings with improved terms in both debt and equity markets. Our enlarged balance sheet will also allow better access to new opportunities of scale, which will drive accelerated earnings and dividend progression.” Read more here: https://rb.gy/15dyet

Consolidation in the market is inevitable. If you look back over a number of years there have been many within the Real Estate space, especially at the REIT level. So the recent list has seen: - Tritax Big Box and UK Commercial Property - LondonMetric and LXi - Custodian and Abrdn Property Income - Shaftesbury and Capital & Counties Merging two real estate investment trusts (REITs) can yield several benefits. It enhances diversification by pooling different property portfolios, potentially reducing risk. Economies of scale can lead to cost savings through streamlined operations and increased negotiating power. Additionally, a larger combined entity may attract more investor interest and improve access to capital markets. Synergies from complementary expertise and resources can enhance overall performance and competitiveness in the real estate market. So why wouldn't you do it? If you look back over the last decade, there are five new entrants in the Top 10 listed real estate groups - three achieved by mergers. Merging isn't new and it will continue. So who might be next? https://lnkd.in/epMqf2bX #RealEstate #Deals #REITs

The long awaited consolidation activity in the REIT sector is hotting up! In addition to the Industrials REIT acquisition by Blackstone in April last year and the CT Property Trust acquisition by London Metric, we now have the merger of LondonMetric with LXI which will create the UK's fourth largest REIT. Following on the heels of this is the proposed merger of Tritax Big Box REIT and UK Commercial and now the Abrdn Property Income Trust being offered for by Custodian REIT with competition coming from Urban Logistics REIT. What is driving this activity? The UK listed REIT sector is characterised by a long tail of sub scale companies mainly trading at large discounts to NAV with underlying investors frustrated by a lack of liquidity in the shares. These all share mergers offer the ability to to convert at reduced discounts with an opportunity for savings in management costs. More activity can be anticipated with the most successful mergers being seen where there is a strong portfolio fit and expertise in managing specific sectors. An alternative to corporate action available to Boards is a sale of assets and wind up to release value to shareholders. The market however is still marked by a lack of liquidity with heavy discounts for sub standard assets. These conditions can expect to persist in the short term, despite growing optimism on the future direction of interest rates. The FTSE EPRA UK Index returned 4.6% in 2023 with a some REIT's showing 20% plus increases in share prices at the end of the year. In comparison, the MSCI/AREF All Balanced Open Ended Property Funds Index returned -1.4%. I wouldn't rule out the quoted sector outperforming the direct market again this year. Both are beset by a lack of new equity being available but all paper mergers can deliver performance through reduced discounts, increased critical mass and cost efficiencies.

Why the merger? “…….the deal some suggested it looked like two worse-for-wear individuals hugging each other for support. The reality is somewhere in between the utopian and cynical extremes, though the merger does have a defensive feel to it……” #housebuilding #housebuilder #redrow #barratt #housing #construction #propertyinvestment #growthstrategy #potential #futuregrowth #ukeconomy #commercialproperty #buildings #sale #acquisitions #redevelopment #constructionjobs #commercial #newhomes #innovation #propertydeveloper #propertydevelopment #residentialconstruction #property #city #investment #development #commercialrealestate #ukrealestate #ukpropertymarket #realestate #investing

As part of the merger announced by Barratt Developments PLC (LSE:BDEV) and Redrow PLC (LSE:RDW) today, the pair described the deal as a “uniquely compelling” opportunity to “create an exceptional UK homebuilder” – though some suggested it looked like two worse-for-wear individuals hugging each other for support. The reality is somewhere in between the utopian and cynical extremes, though the merger does have a defensive feel to it. Alongside accepting a takeover from its larger FTSE 100 rival, Redrow announced a 57% drop in half-year profits today and said subdued recent trading means its full-year results will be at the low end of its previous guidance, while Barratt’s interims showed a 70% plunge in profits and that housing completions are expected to fall 18.6-21.5% for the full year. More at #Proactive #ProactiveInvestors #LSE #BDEV http://ow.ly/IMPF105fA5K

🚀 Talk about a big jump! In 2023, JWB ended the year with a record-breaking 5,847 properties under management—a new milestone in our company's history. But we're not stopping there. 📈 Looking ahead to 2024, we're projected to surpass the 6,300 property threshold. And that's not even including potential acquisitions of property management companies. With three acquisitions already in 2023, our growth trajectory is undeniable. 💼 What does this mean for you as an investor? It means better economies of scale, lower costs, and more resources dedicated to ensuring your properties stay rented longer and your residents are happier. 💡 Unlike many real estate companies that rely solely on big property sales, JWB's property management division provides consistent, stable revenue month after month. This sticky business model ensures our long-term stability and allows us to invest in innovation and research for the future. 🌟 With the incredible growth of our property management division, coupled with our commitment to excellence in all areas, JWB is poised to continue thriving for years to come. Join us on this exciting journey of growth and prosperity! #JWBRealEstate #PropertyManagement #RealEstateInvesting #JacksonvilleFL #Growth #InvestmentOpportunity

🚀 Talk about a big jump! In 2023, JWB ended the year with a record-breaking 5,847 properties under management—a new milestone in our company's history. But we're not stopping there. 📈 Looking ahead to 2024, we're projected to surpass the 6,300 property threshold. And that's not even including potential acquisitions of property management companies. With three acquisitions already in 2023, our growth trajectory is undeniable. 💼 What does this mean for you as an investor? It means better economies of scale, lower costs, and more resources dedicated to ensuring your properties stay rented longer and your residents are happier. 💡 Unlike many real estate companies that rely solely on big property sales, JWB's property management division provides consistent, stable revenue month after month. This sticky business model ensures our long-term stability and allows us to invest in innovation and research for the future. 🌟 With the incredible growth of our property management division, coupled with our commitment to excellence in all areas, JWB is poised to continue thriving for years to come. Join us on this exciting journey of growth and prosperity! #JWBRealEstate #PropertyManagement #RealEstateInvesting #JacksonvilleFL #Growth #InvestmentOpportunity

Primaris REIT Announces Strong Q2/24 and Raises Guidance “We are very pleased with the outperformance of our 2023 shopping centre acquisitions, contributing meaningfully to our increased FFO per unit guidance for this year. Integrating these assets into our larger national footprint and platform is increasing our relevance with both existing tenants, and exciting new-to-market retailers," said Alex Avery, Chief Executive Officer. "We are currently engaged in discussions with prospective counterparties for further acquisitions and dispositions, continuing to build our portfolio of leading enclosed shopping centres in Canada." Senior leadership will be hosting a conference call, webcast and presentation, tomorrow, August 1, at 10:00 a.m. (ET). You can log into the webcast HERE: https://lnkd.in/gpyMmY3u To read the full press release: https://lnkd.in/gA2s3a3z #reit #investment #cre #primarisreit #financialresults #earningsreport #commercialrealestate #retailrealestate #earnings #realestate #realassets #Q22024

Landsec is readying itself to focus on investing around £1bn across its estate and on new assets as it nears the end of its £4bn disposal strategy. The REIT, which this morning announced a solid set of figures for the year ended 31 March, said it had now sold around £3.1bn of the £4bn of disposals it had targeted and was preparing to spend. Over the course of the year Landsec sold £225m of assets and since the year end has offloaded its hotel portfolio for £400m. It spent £136m on acquisitions during the period and a further £220m on development capex. Chief executive Mark Allan said: “We will continue to recycle capital where assets do not meet our return requirements or fit our strategic focus, but this means we are now through the vast majority of our disposal programme.” He added: “As such, our focus for the rest of the year is now on acquisitions, as we aim to recycle the proceeds of our hotels disposal into additional opportunities in major retail. In London and mixed-use, our own investment in new development commitments is likely to be funded principally through future disposals of mature or stand-alone assets, alongside other, complementary sources of capital.” The right major retail destinations were now offering high-single-digit income returns, said the REIT, making them attractive potential acquisitions. Around £600m of the £1bn identified for spending will be focused on major retail. Read more ⬇ ⬇ ⬇ https://lnkd.in/em7WFf5y

We are pleased to share that our previously announced merger with Healthpeak is now completed. The combined company will operate as “Healthpeak Properties, Inc.” and is expected to begin trading under the ticker symbol “DOC” at the open of trading on The New York Stock Exchange on March 4, 2024. “We believe this transaction augments our earnings, balance sheet, and platform. Our integration efforts are progressing ahead of schedule, with property management internalized in four markets to date, with an additional five markets scheduled by the end of the second quarter. We expect to generate merger-related synergies of $40 million during 2024 with potential for $20 million or more of additional synergies by year-end 2025,” said Scott Brinker, President and Chief Executive Officer of Healthpeak. For more information, including details of the key anticipated benefits of the merger, please view our press release here: https://lnkd.in/gg6wMe5P. #Healthpeak #REITnews #RealEstateMerger #NYSETrading #HealthcareRealEstate