Realty Income Corp said on Thursday it would buy commercial property landlord VEREIT Inc for about $11 billion and spin off office properties of both companies into a publicly traded REIT.
VEREIT shareholders will receive 0.705 shares of Realty Income stock and will own 30% of the combined company, while Realty shareholders will own 70%.
Realty Income expects the deal, likely to close during the fourth quarter of 2021, to result in over 10% accretion to its adjusted funds from operations per share in the first year.
Moelis & Company LLC and Wells Fargo Securities are acting as financial advisers to Realty Income.
J.P. Morgan Securities LLC is serving as the financial adviser to VEREIT.
Source: Reuters.com