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REIT Replay: Moody merger


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REIT Replay: Moody merger

REITsposted losses, while the broader markets posted gains Tuesday, Sept. 27, asMoody National REIT I and Moody National REIT II announced a proposed mergerbetween the two nontraded companies.

The MSCIUS REIT Index (RMZ) declined 1.03% to 1,212.70, and the SNL US REIT EquityIndex dropped 0.93%to finish at 324.03. The Dow Jones Industrial Average, meanwhile, gained 0.74%to close at 18,228.30, while the S&P 500 rose 0.64% to end the day at2,159.93.

ATuesday filing revealed that Moody National REIT I Inc. and signed anonbinding letter of intent for Moody National REIT II to acquire MoodyNational REIT I, with the gross merger consideration for the deal being $11 pershare of Moody National REIT I's common stock. Pursuant to the terms of theLOI, the net merger consideration payable to Moody National REIT I'sshareholders cannot be less than $10.25 per share.

Meanwhile,on Monday, Morgans Hotel GroupCo.'s shareholders voted to approve the company's proposed merger with SBE at asame-day special shareholder meeting. Under the deal terms, SBE will acquireMorgans for $2.25 per share in cash.

Sharesof Morgans Hotel stayed flat to end the day at $1.98.

Alsoon Monday, reportsemerged that Monogram ResidentialTrust Inc. is considering selling itself and has reached out topotential suitors. At market close Monday, the company had a market value of$1.77 billion.

MonogramResidential shares edged up 1.41%, closing at $10.76.

said Monday that it signed a definitive agreement to the real estate interests ofnine Steward Health Care System LLC-operated acute care hospitals intransactions totaling $1.25 billion, including a $1.2 billion investment inhospital real estate and a $50 million equity investment in Steward.

Thecompany will fund the acquisition in part with an public offering of 50 millionshares of common stock, increased from 33.5 million shares, priced at $14.50per share. The net proceeds, after underwriting discounts and expenses, are expectedto total roughly $695.1 million, or $799.5 million if the underwriters fullyexercise a 7.5 million-share overallotment option. The company expects theoffering to close Sept. 30.

MedicalProperties shares dropped 1.27% to close at $14.80.

AnbangInsurance Group Co. wrappedup its acquisition of 15 of the 16 properties in the portfolio from Blackstone Group LP, according to a Monday report fromBloomberg News. However, the U.S. Committee on Foreign Investment is stillreviewing the purchase of the last property in the portfolio, the Hotel delCoronado near San Diego. The report added that the $6.5 billion transactioncould be the second-largest U.S. acquisition by a Chinese purchaser.

BlackstoneGroup shares shed 1.81% to close at $25.00.

In abid to identify potential new independent board members, the nominating andcorporate governance committee of New York REIT's board retained executive search firm Spencer Stuart. Thecompany noted that it will consider candidates put forward by the activist WWInvestors LLC, adding that it has been in talks about the appointments with thefirm "for a number of weeks" and "has engaged indiscussions" with Michael Ashner and Steven Witkoff, the joint owners ofWW Investors.

NewYork REIT shares stayed flat at $9.24.

Onthe macro front, the S&P CoreLogic Case-Shiller U.S. National Home PriceNSA Index saw a 5.1%gain from the previous year in July and was up 5.0% from June.

Now featured on S&PGlobal Market Intelligence

: Though most of thecompany's properties are linked to the skilled nursing industry, it plans tofollow its impending IPO by buying acute-care hospitals, executives say.

Market prices and indexvalues are current as of the time of publication and are subject to change.