REIT deal seen as boon for acquirer

REIT deal seen as boon for acquirer
Ladenburg reiterates its 'buy' rating price target on American Realty Capital Properties after its purchase of a related REIT.
JAN 15, 2013
American Realty Capital Properties Inc. Ticker:(ARCP) will benefit from its expected acquisition of a related real estate investment trust, American Realty Capital Trust III, according to one brokerage firm. American Realty Capital Properties announced Monday that it will acquire American Realty Capital Trust III in a transaction expected to close in the second quarter of 2013. “We reiterated our 'buy' rating” and $14 [per share] price target,” David Walrod, an analyst with Ladenburg Thalmann & Co. Inc., wrote in a report Tuesday. “We believe that the expected earnings increases, as well as the increased liquidity, lower cost structure and lower funding costs make [American Realty Capital Properties] an attractive investment opportunity.” Shares of the REIT on Tuesday afternoon were trading at $12.82, up about 7 cents. Over the last 52 weeks, the REIT's stock has traded at between $9.77 and $13.48. Each share of American Realty Capital Trust III will be converted into a right to receive either 0.95 share of American Realty Capital Properties, which would be the equivalent of $12.26 per share based on a closing price of $12.90 last Friday, or $12 in cash. Both REITs have been focused on buying properties that have net leases, which designates the lessee or tenant as being responsible for the costs of leasing the asset as well as the rent. The two REITs on Monday said the combined company will have an enterprise value of $3 billion and will have a portfolio of more than 800 properties.

Latest News

Trump greenlights alternative investments in 401(k) accounts – Industry reacts
Trump greenlights alternative investments in 401(k) accounts – Industry reacts

The president signed an executive order late Thursday which he says will broaden choice

After Muni bond fund blow up, broker-dealers Osaic and Stifel Nicolaus face questions
After Muni bond fund blow up, broker-dealers Osaic and Stifel Nicolaus face questions

Plaintiff's lawyers are eying both broker-dealers for potential client complaints.

Retail investors split on AI's place in financial advice
Retail investors split on AI's place in financial advice

Survey research reveals just three-tenths trust AI-generated recommendations, bolstering the case for lasting human relationships with advisors.

Advyzon and SS&C roll out wealth tech platform updates for advisors
Advyzon and SS&C roll out wealth tech platform updates for advisors

Advyzon has launched a new hub for professionally managed model portfolios, while SS&C unveiled a unified suite of wealth solutions under the Black Diamond banner.

Barred investment advisor, former CNBC pundit sentenced to five years for fraud
Barred investment advisor, former CNBC pundit sentenced to five years for fraud

Former LA-based advisor James Arthur McDonald Jr. is facing federal prison time for defrauding investors out millions of dollars in a Ponzi-like scheme after a failed anti-America bet.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.