Mergers, Acquisitions, REIT Consolidation… oh my!
Corporations are merging left and right. Acquisitions have taken the business world by storm, and now real estate firms are looking to capitalize on this in a low-yield environment. Right now, we are looking at a total of 8 M&A deals that hit a transaction value of $65 billion. To put this in perspective, last year, the market saw 21 M&A deals that totaled only $55 billion. So what is causing this increase? Some say that it can be attributed to discounted valuations, and REIT stock underperformance. Another perspective is that asset managers see “mergers as a cost effective way to increase market share and expand their presence”. When paired with a growing US economy, “exorbitant” asset prices, and a stubborn investment market, it allows for a strong M&A environment. Want to read on about REIT consolidation and the aggressive M&A market?
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