New York REIT Inc.is in talks to merge with privately held real estate investment firm The JBG Cos.,Reuters reported, citing people with knowledge of the matter.

The news boosted New York REIT's shares by up to 12.6%. The company'sshares were also trading up 6% at $10.42 in afternoon trading May 2, which bringsits market cap to roughly $1.7 billion.

The purported talks are not guaranteed to result in a transaction,the news outlet noted, citing the unnamed sources.

New York REIT disclosed in October 2015 that it was exploringstrategic options and engagedEastdil Secured to aid it in the process. Rumorsalso emerged that the company was closingin on a deal to be acquired by SLGreen Realty Corp. An SL Green representative, however, told The Real Deal Jan. 21 that such a deal wasnot happening.

JBG focuses on developing retail, residential and office assetsin Virginia, Maryland and Washington, D.C. The group is also working on a shoppingcenter in King of Prussia, Pa., according to the report.