REIT Regency Centers to acquire Urstadt Biddle Properties in all-stock deal valued at $1.4 billion

Regency Centers Corp.
REG,
+3.09%
said Thursday it has agreed to acquire Urstadt Biddle Properties Inc.
UBA,
+2.42%

UBP,
+2.25%
in an all-stock deal valued at $1.4 billion. Under the terms of the deal, Regency, a REIT that develops shopping centers, will pay 0.347 of a newly issued share for each UBA or UBP share owned, equal to about $20.40 a share based on Regency’s closing price on May 17. Once the deal closes. Regency will own 93% of the new entity, while Urstadt shareholders will own the remaining 7%. Urstadt Biddle Properties is a self-administered equity REIT which owns or has equity interests in 77 properties with about 5.3 million square feet of space. The deal is expected to close late in the third quarter or early in the fourth quarter and to immediately boost Regency’s core operating earnings. The combined portfolio will have 481 total properties and more than 56 million square feet of gross leasable area of open-air shopping centers. Regency’s stock was down 2% premarket, while Urstadt Biddle was halted.