
Shareholders Approve $50B Merger of Realty Income, VEREIT
Shareholders in Realty Income and VEREIT have approved the merger of the two companies, creating a net lease REIT with an enterprise value of approximately $50 billion. The combination was first announced in late April and is expected to close in the fourth quarter.
Immediately following the closing, the companies expect to spin off their combined office holdings into a standalone REIT, with San Diego-based Realty Income as the surviving entity. Realty Income and former VEREIT shareholders are expected to own approximately 70% and 30%, respectively, of both the combined REIT and the spin-off.
“Together, our company will enjoy increased size, scale and diversification, continuing to distance Realty Income as the leader in the net lease industry,” Realty Income CEO Sumit Roy said when the merger was announced. “VEREIT’s real estate portfolio is highly complementary to ours, which we expect to further enhance the consistency and durability of our cash flows.”
- ◦Sale/Acquisition