Blackstone's Acquisition Plans Boost Apartment REIT Index

An index tracking the group rose over 4 per cent, the largest one-day jump since mid-December, after Blackstone said it plans to acquire Apartment Income REIT for roughly $US10 billion . While the industry’s shares remain well below their early 2022 peak, the gain erased this year’s losses and was seen as bolstering investors’ confidence in the sector.

Apartment landlords are among the best performers in the REIT industry year-to-date. Following Monday’s gain, the sector is up 0.9 per cent for the year after being down more than 3 per cent at Friday’s close.Blackstone on Monday agreed to acquire Apartment Income REIT, known as AIR Communities, in an all-cash deal for $US39.12 a share, according to a statement on Monday . That’s a 25 per cent premium from the company’s share price of $31.35 at the close of trading on April 5.

The AIR Communities acquisition is Blackstone’s latest housing bet, following its $US3.5 billion agreement to take single-family landlord Tricon private earlier this year. The company is stepping up its hunt for deals as prices fall in commercial property markets, with President Jon Gray telling investors the firm believes “real estate values are bottoming.”

The apartment market has come under pressure in recent months as owners confront higher borrowing costs and falling valuations. Prices of those buildings in the past 12 months through March have dropped 8 per cent, according to real estate analytics firm Green Street.The Wall Street JournalWall Street analysts have been mixed toward Apartment Income REIT, with Bloomberg data showing four buy ratings, seven holds and zero sells.

Россия Последние новости, Россия Последние новости

Similar News:Вы также можете прочитать подобные новости, которые мы собрали из других источников новостей

Competition regulator investigates Experian's acquisition of illionThe competition regulator is investigating Experian's proposed acquisition of illion, a competitor of Equifax, to control strategic consumer credit data sets used by local banks.
Источник: FinancialReview - 🏆 2. / 90 Прочитайте больше »

ORA ASX: Orora says earnings sagging at its big French acquisition SaverglassThe ASX-listed bottle manufacturer purchased the 126-year-old business last year. On Tuesday, it said orders were lower than expected, sending shares lower.
Источник: FinancialReview - 🏆 2. / 90 Прочитайте больше »

Westpac’s $3.5b tech catch-up is a warning to ANZ about its Suncorp acquisitionFifteen years after buying St George, Westpac is finally unifying its banking systems. ANZ investors will hope they’re not hearing about the Suncorp integration in 2039.
Источник: FinancialReview - 🏆 2. / 90 Прочитайте больше »

Canva has designs on the pros following its largest ever acquisitionDesign software Canva, Australia’s richest start-up, had previously targeted amateurs. Now, it’s going after professional designers.
Источник: smh - 🏆 6. / 80 Прочитайте больше »