SRC - Why Spirit Realty Capital Stock Soared and Realty Income Sank Monday
2023-10-30 11:44:58 ET
Shares of Texas-based real estate investment trust (REIT) Spirit Realty Capital (NYSE: SRC) popped Monday morning on news of a buyout. The stock jumped more than 12% in early trading. As of 11:05 a.m. ET, Spirit shares have pared that gain, but are still higher by 7.1%.
As is fairly typical after an acquisition announcement, the stock of the acquirer was down on the news. In this case it's Realty Income (NYSE: O) , down 6.6%.
Spirit is being acquired in an all-stock transaction valued at about $9.3 billion by the much larger REIT Realty Income. Importantly for investors in Realty Income, the company believes the deal will add to its annual adjusted funds from operations (AFFO) by 2.5% immediately.
For further details see:
Why Spirit Realty Capital Stock Soared and Realty Income Sank Monday