Three Apple REITs might merge

Boards have authorized a consolidation, but no decision made

By Dan Jamieson

Jun 27, 2013 @ 3:24 pm (Updated 5:21 pm) EST

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.