DENVER - Institutional Shareholder Services Inc. (ISS) has recommended Apartment Income REIT Corp. (NYSE:AIRC) stockholders to vote in favor of the company's acquisition by Blackstone (NYSE:BX) Real Estate Partners X, as per the announcement made today. The acquisition, which is an all-cash deal, values the company at $39.12 per share. Shareholders will cast their votes at the Special Meeting scheduled for June 25, 2024.
The definitive merger agreement with Blackstone affiliates is set to be finalized on or around June 28, 2024, pending stockholder approval and other customary closing conditions. The board of directors of Apartment Income REIT has urged stockholders to vote for the merger, emphasizing the importance of every vote regardless of the number of shares owned.
Apartment Income REIT Corp., a self-administered real estate investment trust, operates 76 communities with 27,010 apartment homes across 10 states and the District of Columbia. The company's business model focuses on resident selection, satisfaction, and retention, which they credit for driving organic growth and potentially higher returns for new properties added to their platform.
Stockholders of record as of May 13, 2024, are eligible to vote at the Special Meeting. Those requiring assistance with voting can contact the proxy solicitor, MacKenzie Partners, Inc.
This article is based on a press release statement.
In other recent news, Apartment Income REIT Corp. (AIRC) has been the subject of significant Wall Street attention due to an impending acquisition by Blackstone Real Estate. The all-cash transaction is valued at approximately $10 billion and includes the assumption of debt. This development has led to a reevaluation of AIRC's stock by several analysts, resulting in downgrades to 'Peer Perform' by Wolfe Research and 'Market Perform' by BMO Capital Markets.
Despite this, the company's financial health remains robust, with strong same-store revenue and net operating income growth in 2023. The company has also provided guidance midpoints for 2024 same-store revenue and net operating income growth at +3.8%, surpassing the sector average.
However, due to the acquisition, analysts have ceased providing long-term price targets, focusing instead on the near-term implications of the buyout. The multifamily housing sector, where AIRC operates, is highly competitive, with entities like Independence Realty (NYSE:IRT) and Camden being potential M&A targets.
InvestingPro Insights
Amidst the upcoming acquisition of Apartment Income REIT Corp. by Blackstone Real Estate Partners X, the latest data from InvestingPro provides a snapshot of the company's financial health and market performance. With a market capitalization of $6.13 billion, AIRC is trading at a P/E ratio of 8.9, indicating a potentially undervalued stock compared to near-term earnings growth. Notably, the company has a high dividend yield of 4.65%, rewarding shareholders as they contemplate the acquisition offer.
InvestingPro Tips suggest that AIRC's management has been focused on shareholder returns, with aggressive share buybacks and a high shareholder yield. Additionally, the company is trading at a low earnings multiple, which could be a point of interest for investors considering the buyout price of $39.12 per share against the recent close price of $38.73. With a strong return over the last three months of 21.72%, AIRC's stock performance has been robust leading up to the acquisition announcement.
For those looking to delve deeper into AIRC's financials and market outlook, InvestingPro offers additional insights. There are 10 more InvestingPro Tips available that provide a comprehensive analysis of AIRC's performance and future expectations. Interested investors can explore these tips to inform their voting decision on the proposed merger and can take advantage of a special offer using coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.