FiveU.S. REIT M&A deals were announced in the first half of 2016 with a total dealvalue of $25.61 billion. That deal value is more than 80% higher than the aggregatedeal value of transactions announced during the first half of 2015 and the greatestaggregate deal value announced in a first half since 2007, which saw 15 announceddeals totaling $63.73 billion.

Nonetheless,U.S. REIT M&A activity will need to aggregate an additional $30.66 billion inthe second half to match the total from 2015.

Of thefive deals announced in the first half, the largest is the proposed of NorthStar Asset Management, Colony Capital Inc. and NorthStar Realty Finance Corp. in an all-stock merger ofequals. Upon closing, NorthStar Asset Management shareholders will own approximately32.85% of the combined entity, Colony Capital shareholders will own approximately33.25% and NorthStar Realty Finance shareholders will own 33.90%.

The second-largestdeal by deal value is the pending mergerof New York REIT and TheJBG Cos. into a publicly traded REIT with a roughly $8.4 billion enterprise value.Shareholders, however, have been lessthan pleased with the proposed deal. New York REIT's share price droppedmore than 8% on May 26, the day after the deal was announced, and the deal has beencriticized by analystsand investors. Michael Ashner, co-owner of New York REIT shareholder WW InvestorsLLC, called the deal "one of the worst strategic transactions proposed to stockholdersby a REIT board in recent memory, and will be extremely detrimental to NYRT stockholders'interests."

OfficeREITs Cousins Properties Inc.and Parkway Properties Inc.in April announced a definitiveagreement to merge in a stock-for-stock deal and simultaneously spin off both companies'Houston-based assets into a new publicly traded REIT. Upon completion of the $3.83billion deal, current Cousins shareholders will own approximately 52% of both thesurviving Cousins entity as well as the Houston spinoff, while Parkway shareholderswill own 48% of both companies.

In thehospitality space, Apple HospitalityREIT Inc. announcedin mid-April plans to acquire nontraded REIT Apple REIT Ten Inc. in a deal with an implied value of $1.30billion. The deal is expected to close in the third quarter, and shareholders ofboth parties will voteon the transaction Aug. 31.

's$2.80 billion acquisitionof regional mall REIT Rouse PropertiesInc., announced in February, closed July 6. It is the only deal announced in 2016 to reach completion thus far.

For thedeals announced during the first half of 2016, only 3.2% of the consideration wasslated to be paid out in cash, while assumed debt made up 62.8% and common stockaccounted for just over 34.0%. During the same period in 2015, however, the trendwas very different, with 63.9% of the consideration paid out in cash, the assumptionof debt making up 35.1% and just 1.0% being paid out as common equity.