Commercial real estate investment trust Kimco Realty said on Monday it would buy RPT Realty in an all-stock transaction valued at about $2 billion.
RPT Realty shareholders will receive 0.6049 of a newly-issued Kimco stock for each share held, or $11.34, a 19% premium to RPT’s closing price on Aug. 25.RPT’s shares jumped about 15% in premarket trade after the deal was announced.
The acquisition of RPT Realty, whose tenants include TJ Maxx stores, Dollar Tree and Ross Stores, adds to Kimco’s portfolio of grocery-anchored shopping centers in the U.S.
The deal will expand Kimco’s presence in the Coastal and Sun Belt markets, CEO Conor Flynn said in a statement.
The transaction, which is expected to close in the beginning of 2024, will immediately add to Kimco’s funds from operations (FFO).
In July, Kimco topped market expectations for second-quarter revenue, benefiting from higher rental rates and resilient demand for space in its grocery-anchored shopping centers.