Why Urstadt Biddle Properties Shares Are Jumping Today
$REG
$UBA
Real Estate Investment Trusts
Real Estate
Real Estate Investment Trusts
Real Estate
- Regency Centers Corp (NASDAQ:REG) announced the acquisition of Urstadt Biddle Properties Inc (NYSE:UBA) in an all-stock transaction for around $1.4 billion, including the assumption of debt and preferred stock.
- As per the deal, UBA's common stockholders will receive 0.347 of a newly-issued REG share for each UBA or UBP share they own, representing around $20.40 per share, based on REG's closing share price on May 17, 2023. The price represents a premium of over 20% to UBA's May 17, 2023, closing price.
- The combined company is expected to have a pro forma equity market capitalization of about $11 billion and a total enterprise value of around $16 billion.
- The combined portfolio will comprise 481 total properties, containing over 56 million square feet of gross leasable area.
- REG will own around 93% of the combined company post-deal closure, while UBA will own the rest.
- The company expects the acquisition to be immediately accretive to core operating earnings, including annual cost-saving benefits of around $9 million.
- The transaction is expected to close by late Q3 or early Q4 2023.
- Lisa Palmer, President and CEO said, "The portfolio that Urstadt Biddle has carefully assembled over more than 50 years offers a highly aligned demographic and merchandising profile to Regency. Both companies have a successful track record of owning and operating best-in-class grocery-anchored neighbourhood and community centers in premier suburban trade areas, and we look forward to the synergies and growth opportunities that this transaction will offer to the combined shareholder base."
- Price Action: UBA shares are trading higher by 18.7% at $20.12 on the last check Thursday.