Monmouth Real Estate Agrees To Be Bought By ILPT In $4 Bln Deal - Quick Facts

(RTTNews) - Monmouth Real Estate Investment Corp. (MNR) on Friday entered into a definitive agreement to be acquired by Industrial Logistics Properties Trust (ILPT) for $21.00 per share in an all-cash transaction.

The deal is valued at approximately $4.0 billion, including committed MNR acquisitions, transaction costs and the assumption of $409 million of debt.

The transaction is subject to customary closing conditions, including MNR shareholder approval, and is expected to close in the first half of 2022.

ILPT expects the acquisition to be immediately accretive to Normalized Funds from Operations, or FFO, per share.

The transaction adds 126 new, Class A, single tenant, net leased, e-commerce focused industrial properties to ILPT's existing high-quality portfolio and improves geographic and tenant diversity.

To finance the acquisition, ILPT expects to enter into a joint venture with one or more institutional investors for equity investments of between approximately $430 million and $1.3 billion.

ILPT plans to finance the balance of the $4.0 billion purchase with proceeds from new mortgage debt and the assumption of approximately $409 million of existing MNR mortgage debt.

In pre-market activity on the NYSE, Monmouth Real Estate shares were gaining around 10 percent to trade at $20.75.