Apartment Income REIT Corp. AIRC shares are trading
higher after it inked a deal with Blackstone Inc. BX to be taken private.
Deal Breakdown
Blackstone Real Estate Partners X entered into a definitive agreement to acquire AIR Communities in an all-cash transaction valued at about $10 billion, including the assumption of debt. The purchase price of $39.12 per share represents a premium of 25% to Apartment Income Communities’ closing share price on the NYSE on April 5, 2024.
Investment Strategy
Apartment Income Communities’ portfolio comprised 76 rental housing communities concentrated mainly in coastal markets, including Miami, Los Angeles, Boston, and Washington D.C. Blackstone plans to invest over $400 million to maintain and improve the existing communities in the portfolio.
Transaction Details
Transaction Closure: The transaction, unanimously approved by the AIR Communities Board of Directors, is expected to close in the third quarter of 2024, subject to customary closing conditions. As part of the deal term, Apartment Income suspended payment of its quarterly dividend with immediate effect.
Financial Strength
As of December 31, 2023, Blackstone had $8.4 billion in total cash, cash equivalents, corporate treasury, and other investments and $16.9 billion of cash and net investments.
Trading Impact
AIR Communities’ shares will not be listed on the New York Stock Exchange after the completion of the deal. AIRC shares are up 22.5% at $38.40 on the last check Monday.
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