Mergers, Acquisitions, REIT Consolidation… oh my!

July 26, 2018
Written by administrator in category 

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?

Read more here!

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