S&P Global Market Intelligence offers our top picks of U.S. real estate news stories and more published throughout the week. Please note that some entries may have links to third-party sources that may require a subscription.
Busy month on the M&A beat
* Forest City Realty Trust Inc., which recently has been trimming its retail holdings as part of a portfolio fine-tuning strategy, is reported to be in talks for a possible takeover by Canadian asset manager Brookfield Asset Management Inc. The diversified real estate investment trust launched a review of strategic alternatives in September 2017 after it came under pressure from activist investor Land & Buildings Investment Management LLC to boost shareholder value.
* Diversified REIT VEREIT Inc. wrapped up the divestment of its investment management arm, Cole Capital, to a CIM Group affiliate. In line with the deal closing, several nontraded REITs sponsored by Cole Capital announced that Glenn Rufrano and Thomas Roberts stepped down as president and CEO at the respective companies, among other management and board changes.
* Colony Northstar Credit Real Estate Inc. hit the NYSE Feb. 1 after completing its tri-party merger with NorthStar Real Estate Income Inc. and NorthStar Real Estate Income II Inc., two other affiliates of diversified REIT Colony NorthStar Inc.
Earnings report card
* Office REITs Boston Properties Inc., Alexandria Real Estate Equities Inc. and Kilroy Realty Corp., as well as multifamily REITs AvalonBay Communities Inc., Mid-America Apartment Communities Inc. and Equity Residential all posted year-over-year gains in funds from operations for the fourth quarter of 2017. Other companies reporting year-over-year increases in FFO during the period were mall giant Simon Property Group Inc., manufactured-home REIT Equity LifeStyle Properties Inc. and industrial REIT Duke Realty Corp.
In announcing results, AvalonBay increased its quarterly dividend for the first quarter by 3.5% to $1.47 per share. Kilroy said it acquired a laboratory and office project in the Oyster Point submarket of South San Francisco for $111 million. Simon Property increased its quarterly dividend by 11.4% year over year to $1.95 per share.
* Timber REIT Potlatch Corp. recorded a year-over-year drop in net income during the fourth quarter of 2017. Chairman and CEO Mike Covey said the company expects to close its pending merger with Deltic Timber Corp. by the end of February.
La dolce VICI
* Diversified REIT VICI Properties Inc. priced its upsized IPO at the midpoint of its projected range. The company is offering 60.5 million common shares, instead of an earlier target of 50 million shares, at an issue price of $20.00 apiece.
CEO change of control
* Pressed by an activist investor, Wheeler Real Estate Investment Trust Inc. terminated Jon Wheeler as its chairman, president and CEO, with Chief Investment Officer David Kelly taking over the CEO and president roles. The grocery-anchored shopping center landlord also tapped Chief Accounting Officer Matthew Reddy as its new CFO, following the immediate exit of Wilkes Graham.
* Alexandria Real Estate plans to appoint a replacement for Chairman and CEO Joel Marcus in the first quarter. The new executive will assume the post in the second quarter, and Marcus will transition to executive chairman.
Earnings Call Coverage
S&P Global Market Intelligence reporters tuned in to conference calls hosted by some of the larger players in the real estate sector, as the 2017 fourth-quarter earnings season kicked into high gear.
Weaker job growth slowing Seattle apartment rent growth, AvalonBay execs say
New construction hurt Mid-America apartment rents in Q4'17, execs say
Equity Residential expects drag from NYC in '18
Entire tenant base showing renewed confidence, Boston Properties execs say
Simon Property to remain out of 'big-deal business'
Featured during the week on S&P Global Market Intelligence
Conference Chatter: Hotel execs hope for corporate travel bump in 2018
Data Dispatch: US REITs raise $2.3B in first 2 weeks of January
Data Dispatch: January state of the housing market
