Three Apple REITs might merge

Boards have authorized a consolidation, but no decision made

Jun 27, 2013 @ 3:24 pm

By Dan Jamieson

Three Apple REITs are considering a consolidation.

In separate regulatory filings Thursday, Apple REIT Seven Inc., Apple REIT Eight, Inc. and Apple REIT Nine Inc. said that their boards had “authorized the evaluation of a potential consolidation transaction” in which the three non-traded REITs would combine.

The REITs said they had not yet made a decision to pursue any particular transaction, “and there can be no assurance that the evaluation of a potential consolidation transaction will result in such transaction being accomplished.”

No timetable for a deal has been set, the filings said.

The REITs also said they do not expect to comment further until their boards had approved a transaction.

Kelly Clarke, director of investor services at Apple Real Estate Investment Trust Companies, which manages the three REITs that specialize in extended-stay hotels, declined comment.

Apple REIT Seven owns 51 hotels purchased since 2006 for a total of $901 million; Apple REIT Eight, which began raising money in 2007, also has 51 hotels, bought for $950 million; and the Apple REIT Nine REIT has 89 hotels purchased for $1.5 billion since it was offered in 2008.

0
Comments

What do you think?

View comments

Recommended for you

Featured video

Events

Dynasty's Penney: Top RIA trends for 2018

What's next for RIAs? Dynasty's Shirl Penney talks about the growing numbers of entrepreneurial advisers. Plus, what inspired his own entrepreneurship.

Latest news & opinion

Nontraded BDC sales in worst year since 2010

The illiquid product's three-year decline is partially due to new regulations and poor performance.

Tax reform debate sparks fresh interest in donor-advised funds

Schwab reports new accounts up 50% from last year, assets up 33%.

Broker protocol for recruiting a boon for clients

New research finds advisers whose firms have joined the agreement take better care of customers.

Meet our 2017 Women to Watch

Introducing 20 female financial advisers and industry executives who are distinguished leaders, advancing the business of providing advice through their creativity and hard work.

Raymond James executives call on industry to keep broker protocol

Also ask firms to pay for the administration of the protocol to 'ensure its longevity and relevance.'

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print