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Spirit Realty spins off; Wyndham Worldwide unwinds

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.

Splits and spins

* Spirit Realty Capital Inc. plans to spin off a REIT that will own all of its Shopko-leased properties and its Master Trust 2014 assets. The new company is expected to have more than 925 properties with a gross real estate investment valued at $2.7 billion with $220 million in annualized contractual rent. Spirit will hold on to 1,540 properties valued at approximately $5.4 billion. During an earnings call, President and CEO Jackson Hsieh said spinning off the properties rather than selling them outright is the best possible alternative and comes on the heels of an "extremely extensive review."

* Wyndham Worldwide Corp. plans to split itself into two separate companies: a pure-play hotel company, The Wyndham Hotel Group, and a timeshare company comprised of Wyndham Vacation Ownership and Wyndham Destination Network. Wyndham executives declined to provide details on the new entities' capital structures during the company's second-quarter earnings call, but said as standalone entities, the companies should be able to pursue more mergers and acquisitions.

* The dispute over the merits of Sabra Health Care REIT Inc.'s proposed acquisition of Care Capital Properties Inc. continued with Hudson Bay Capital Management LP and Eminence Capital LP announcing that Institutional Shareholder Services said shareholders should vote against the deal due to the "fragility" of Care Capital's portfolio and ongoing difficulties in the skilled nursing industry. Another proxy adviser, Glass Lewis & Co. LLC, came out in favor of the deal, however, and Sabra Chairman, President and CEO Rick Matros called accusations that his company is overpaying for Care Capital's assets "silly" during an earnings call.

Capital ideas

* Digital Realty Trust Inc. hit the capital markets to help finance its pending merger with DuPont Fabros Technology Inc. The company priced a debt offering of $1.35 billion, which comprises $350 million of 2.750% notes due Feb. 1, 2023, and $1.0 billion of 3.700% notes due Aug. 15, 2027. Digital Realty also priced an offering of 8.0 million shares of 5.25% series J cumulative redeemable preferred stock, with a liquidation preference of $25.00 per share, for $200 million.

* Crown Castle International Corp. closed a $1.75 billion debt offering, the proceeds of which will be used to help fund its $7.1 billion all-cash acquisition of LTS Group Holdings LLC, or Lightower. The company is offering $750 million of 3.200% senior notes due Sept. 1, 2024, and $1.0 billion of 3.650% senior notes due Sept. 1, 2027.

* Healthcare Trust of America Inc. and its operating partnership signed an agreement for a $1.00 billion unsecured revolving credit facility and a $300.0 million term loan facility. The revolver and term loan are due June 2022 and February 2023, respectively. The credit agreement may be expanded by up to $750.0 million, for $2.05 billion in total principal amount.

* Public Storage is looking to raise $300 million with an offering of 12.0 million depository shares at $25.00 apiece.

* Washington Prime Group Inc. plans to raise $750 million with an underwritten public offering of 5.950% notes due Aug. 15, 2024. The company is offering the notes at 98.467% with a yield to maturity of 6.222%.

* Kimco Realty Corp. priced a debt offering of $850 million, which comprises $500 million of 3.300% notes due Feb. 1, 2025, and $350 million of 4.450% notes due Sept. 1, 2047. Kimco said it may use part of the net proceeds of the offering to fund the consideration for its cash tender offer for its 4.30% series E medium-term notes due 2018.

* Senior Housing Properties Trust got an extension on its $1 billion unsecured revolving credit facility. The due date on its loan was extended to Jan. 15, 2022, from Jan. 15, 2018. The company also amended a $200 million term loan to lower the interest rate.

Conference call coverage

S&P Global Market Intelligence tuned in to conference calls hosted by some of the larger players in the real estate sector, as the second-quarter earnings season got underway during the week ending August 4.

Macerich CEO: Headlines declaring 'death of the mall' are 'fake news'

Boston Properties looking to grow in Los Angeles market

GGP opts, after strategic review, to 'stay the course'

Brookdale's possible sale hurt Q2 results, HCP execs say

HCP chairman calls Welltower's Brinker lawsuit dismaying, 'inexplicable'

Vornado exec sees financial services firms returning to NYC from Connecticut

David Simon: 'We don't see the end of our business'

Featured during the week on S&P Global Market Intelligence

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