New federal tax rules create advantage for real estate investment trusts

RTS Private Wealth Management | June 18, 2019

As Generation X and millennials inherit their baby boomer parents’ assets amid the so-called Great Wealth Transfer, some will look to invest it in rental property to generate income. This property might be a duplex, an apartment building or, depending on the location, a single-family house that could eventually become a retirement home. Yet many aren’t aware that because of the various costs and risks involved, becoming a landlord a role fraught with headaches may not turn out to be profitable.

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REAL ESTATE INVESTMENT

STORE Capital to be Acquired by GIC and Oak Street in $14 Billion Transaction

STORE Capital, GIC and Oak Street | September 17, 2022

STORE Capital Corporation, an internally managed net-lease real estate investment trust (REIT) that invests in Single Tenant Operational Real Estate, and GIC, a global institutional investor in partnership with Oak Street, a Division of Blue Owl, one of the largest net lease investors, today announced that they have entered into a definitive agreement under which GIC and funds managed by Oak Street will acquire STORE Capital in an all-cash transaction valued at approximately $14 billion. Under the terms of the definitive merger agreement, STORE Capital stockholders will receive $32.25 per share in cash, which represents a premium of 20.4% to STORE Capital’s closing stock price as of September 14, 2022 and a premium of 17.8% to the 90-day volume weighted average stock price through that date. “This all-cash transaction delivers a meaningful premium that provides immediate and certain value for our stockholders in a challenging market environment, while positioning the Company, its customers and its partners for continued success, I would like to extend my thanks to the entire Board and management team for their hard work during this process, and for their unwavering commitment to acting in the best interests of our stockholders.” -Tawn Kelly, Chairman of the Board of Directors of STORE Capital We are pleased to partner with GIC and Oak Street to deliver what we believe is an excellent outcome for our stockholders, This opportunity is an endorsement, by two leading real estate investors with significant access to capital, of the strength of our platform, our experienced leadership team and our disciplined investment approach. We look forward to continuing to grow and support our customers,said Mary Fedewa, President and Chief Executive Officer of STORE Capital. As one of the largest dedicated U.S. net lease real estate companies in a nearly US$4 trillion-dollar market, STORE Capital is a strong addition to GIC’s diverse portfolio of U.S. real estate investments, We are confident the Company will continue its trajectory of accretive growth by meeting the demand for long-term financing solutions from middle market U.S. companies. We look forward to working closely with STORE Capital and our partners at Oak Street to grow this platform over the long term,said Adam Gallistel, Head of Americas Real Estate, GIC. As a global long-term investor, GIC seeks to invest in best-in-class businesses with strong long-term growth potential, We are thrilled to lead this investment in STORE Capital given its impressive cash flow profile, long-weighted average lease term and highly diversified portfolio with strong rent coverage,said Lee Kok Sun, Chief Investment Officer of Real Estate, GIC. We are extremely excited to invest together with a like-minded and thoughtful partner in GIC, We believe the STORE Capital platform complements Oak Street’s exposure to the triple-net industry and our focus on sale-leasebacks. The potential scale of this combination and partnership can deliver one of the most diversified, unique and long dated net lease platforms across the globe,said Marc Zahr, President of Oak Street. Timing and Approvals The transaction, which was unanimously approved by the STORE Capital Board of Directors, is expected to close in the first quarter of 2023, subject to approval by STORE Capital’s stockholders and the satisfaction of certain other customary closing conditions. The closing of the transaction is not subject to any financing conditions. The definitive merger agreement includes a 30-day “go-shop” period that will expire on October 15, 2022, which permits STORE Capital and its representatives to actively solicit and consider alternative acquisition proposals. There can be no assurance that this process will result in a superior proposal, and the Company does not intend to disclose developments with respect to the go-shop process unless and until it determines such disclosure is appropriate or is otherwise required. Under the terms of the definitive merger agreement, STORE Capital will declare and pay its third quarter cash dividend in the ordinary course. Thereafter, the Company has agreed to suspend payment of any further regular quarterly dividends through the closing. Subject to and upon completion of the transaction, STORE Capital’s common stock will no longer be listed on the New York Stock Exchange. Advisors Evercore and Goldman Sachs & Co. LLC are acting as financial advisors to STORE Capital, and DLA Piper LLP (US) is acting as its legal counsel. Eastdil Secured Advisors LLC and Citigroup Global Markets Inc. are acting as financial advisors to GIC and Oak Street. Skadden, Arps, Slate, Meagher & Flom LLP is acting as legal counsel to GIC and Kirkland & Ellis LLP is acting as legal counsel to Oak Street. About STORE Capital STORE Capital is an internally managed net-lease REIT that is a leader in the acquisition, investment and management of Single Tenant Operational Real Estate, which is its target market and the inspiration for its name. STORE Capital is one of the largest and fastest growing net-lease REITs and owns a large, well-diversified portfolio that consists of investments in more than 3,000 property locations across the United States, substantially all of which are profit centers. About GIC GIC is a leading global investment firm established in 1981 to secure Singapore's financial future. As the manager of Singapore's foreign reserves, GIC takes a long-term, disciplined approach to investing, and is uniquely positioned across a wide range of asset classes and active strategies globally. These include equities, fixed income, real estate, private equity, venture capital, and infrastructure. The firm's long-term approach, multi-asset capabilities, and global connectivity enable them to be an investor of choice. GIC seeks to add meaningful value to its investments. Headquartered in Singapore, GIC has a global talent force of over 1,900 people in 11 key financial cities and has investments in over 40 countries. About Oak Street, a Division of Blue Owl Oak Street, a division of Blue Owl, is a real estate investment firm focused on acquiring properties net-leased to investment grade and creditworthy tenants. Oak Street specializes in providing flexible capital solutions to a variety of organizations including corporations, healthcare systems, universities and government entities. Oak Street has $16.6 billion in assets under management as of June 30, 2022. Blue Owl is a global alternative asset manager with $119 billion in assets under management as of June 30, 2022. Anchored by a strong permanent capital base, the firm deploys private capital across Direct Lending, GP Solutions and Real Estate strategies on behalf of Institutional and Private Wealth clients. Blue Owl's flexible, consultative approach helps position the firm as a partner of choice for businesses seeking capital solutions to support their sustained growth.

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MARKET OUTLOOK, REAL ESTATE INVESTMENT

Bright MLS Partners with RISMedia to Deliver Premier Content to Its 110,000-Plus Subscribers

RISMedia | October 28, 2022

RISMedia announces a new partnership with Bright MLS, one of the nation's largest multiple listing services serving over 110,000 real estate professionals from Pennsylvania to Virginia, to bring its best-in-class articles to its subscribers' via their workspace dashboard. The Bright MLS news widget will deliver a daily selection of RISMedia content to its subscribers, including breaking news, industry updates as well as access to RISMedia's Premier premium content channel that features investigative journalism, one-of-a-kind special reports and proprietary industry data and competitive intelligence. "Homeownership is a part of the American dream, and the majority of buyers and sellers need and appreciate the advice of a real estate professional to guide them through the process. As prices and inflation continue to rise and economic conditions are uncertain, agents need to complement their local market expertise with comprehensive and forward-looking news and market insights. We are looking forward to delivering RIS' thoughtful content to our subscribers through this news widget," - Amit Kulkarni, Bright MLS CMO Information is our currency and our goal is to consistently provide REALTORS® with this extremely valuable currency, Our relationship with Bright MLS has been created to better serve the informational needs of their subscribers, enabling these professionals to be better equipped, helping them to succeed and better service their clients. RISMedia is steadfast in our mission to remain the most reliable independent source for real estate news and information and we are proud to have Bright MLS as a new partner,said RISMedia founder and CEO, John Featherston. As part of the partnership, all Bright MLS subscribers have access to all RISMedia educational events. RISMedia also announced that Bright MLS Chief Economist Dr. Lisa Sturtevant will be penning a monthly column in RISMedia's Real Estate magazine and will be a keynote speaker at the company's annual virtual new year kickoff event, Real Estate's Rocking in the New Year, taking place on January 5 at 11 a.m. About RISMedia RISMedia was founded in 1980 by CEO and Publisher John E. Featherston as the residential real estate industry's definitive source for news and information for real estate's most profitable and productive professionals. For over 40 years, RISMedia has provided the industry with news, trends, and educational events.

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REAL ESTATE INVESTMENT

Choice Properties Real Estate Investment Trust Announces Normal Course Issuer Bid

Choice Properties Real Estate Investment Trust | November 21, 2022

Choice Properties Real Estate Investment Trust (“Choice Properties” or the “Trust”)(TSX: CHP.UN) announced today that the Toronto Stock Exchange (“TSX”) has accepted a notice filed by Choice Properties of its intention to make a normal course issuer bid (“NCIB”). The TSX notice provides that Choice Properties may, during the 12-month period commencing November 21, 2022 and terminating November 20, 2023, purchase up to 27,566,522 of Choice Properties trust units (“Units”), representing approximately 10% of the public float of the Units, by way of a NCIB over the facilities of the TSX or through alternative trading systems or by such other means as may be permitted under applicable law. As of November 9, 2022, Choice Properties had 327,758,449 outstanding Units. Based on the average daily trading volume of 354,532 during the last six months, daily purchases will be limited to 88,633 Units, other than block purchase exceptions. Purchases of Units will be made in open market transactions over the facilities of the TSX or through alternative trading systems. In addition, Choice Properties may enter into forward purchase or swap contracts in connection with Units which may be settled by physical settlement, cash settlement or a combination thereof. The forward price will be based on market price, dividend yield and market interest rates. Choice Properties may also purchase Units through private agreements or unit repurchase programs if it receives an issuer bid exemption order permitting it to make such purchases. Any purchases of Units made by way of private agreements or under unit repurchase programs may be at a discount to the prevailing market price as provided in the relevant issuer bid exemption order. Decisions regarding the timing of future purchases of Units will be based on market conditions, Unit price and other factors. Choice Properties may elect to suspend or discontinue its NCIB at any time. Units purchased under the NCIB will be cancelled or used in connection with the Trust’s equity settled incentive plans. Choice Properties believes that the market price of Units could be such that their purchase may be an attractive and appropriate use of corporate funds. Choice Properties may also use its NCIB to acquire the number of Units that are issued pursuant to the exercise of options in order to offset the dilutive effect of options that have been exercised. Pursuant to its previous NCIB, under which Choice Properties received approval from the TSX to purchase up to 27,558,665 Units for the period of November 19, 2021 to November 18, 2022. As at November 9, 2022, Choice Properties purchased 230,682 Units through open market purchases on the TSX and alternative trading systems at a weighted average price of $14.39. From time to time, when Choice Properties does not possess material non-public information about itself or its securities, it may enter into a pre-defined plan with its broker to allow for the purchase of Units at times when Choice Properties ordinarily would not be active in the market due to its own internal trading blackout periods and insider trading rules. Any such plans entered into with Choice Properties’ broker will be adopted in accordance with the requirements of applicable Canadian securities laws. About Choice Properties Real Estate Investment Trust Choice Properties is a leading Real Estate Investment Trust that creates enduring value through the ownership, operation and development of high-quality commercial and residential properties. We believe that value comes from creating spaces that improve how our tenants and communities come together to live, work, and connect. We strive to understand the needs of our tenants and manage our properties to the highest standard. We aspire to develop healthy, resilient communities through our dedication to social, economic, and environmental sustainability. In everything we do, we are guided by a shared set of values grounded in Care, Ownership, Respect and Excellence.

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REAL ESTATE INVESTMENT,REAL ESTATE ADVICE

FCPT Announces Acquisition of a Portfolio of 3 Caliber Collision Properties for $5.4 Million

FCPT | November 30, 2022

Four Corners Property Trust (NYSE:FCPT), a real estate investment trust primarily engaged in the ownership and acquisition of high-quality, net-leased restaurant and retail properties (“FCPT” or the “Company”), is pleased to announce the acquisition of three Caliber Collision properties for $5.4 million. The properties are located in highly trafficked corridors in Indiana and are corporate-operated under net leases with a weighted average of approximately five years of term remaining. The transaction was priced at a 7.0% cap rate, exclusive of transaction costs. About FCPT FCPT, headquartered in Mill Valley, CA, is a real estate investment trust primarily engaged in the ownership, acquisition and leasing of restaurant and retail properties. The Company seeks to grow its portfolio by acquiring additional real estate to lease, on a net basis, for use in the restaurant and retail industries.

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