Blackstone Inc. (NYSE:BX) shares are trading higher premarket today. The company is reportedly in early talks to acquire Retail Opportunity Investments Corp. (NASDAQ:ROIC).
The buyout firm's approach suggests it sees value in ROIC's properties, which primarily include supermarkets and drugstores, reported Reuters.
Blackstone's interest follows a 10% drop in ROIC's shares over the past year, lagging behind other real estate investment trusts (REITs).
As per the report, no deal is guaranteed, and another bidder for ROIC could still emerge.
Based in San Diego, California, ROIC owned 95 shopping centers totaling approximately 10.7 million square feet (994,000 square meters) as of June. Last week, ROIC reported FFO for the second quarter of 2024 of $34.1 million, or $0.25 per share, as compared to $35.6 million in FFO, or $0.27 per share for the second quarter of 2023.
Yesterday, Blackstone Real Estate and MRP Group extended their all-cash tender offer of Ps. 40.50 per certificate for up to 100% of Terrafina's outstanding real estate trust certificates.
The all-cash tender offer includes a 27% premium over Terrafina's unaffected price on December 4, 2023, and a more than 10% premium over its closing share price on June 7, 2024.
This month, BX reported second-quarter fiscal year 2024 adjusted revenues of $2.796 billion, beating the consensus of $2.619 billion. Distributable earnings per share of $0.96 (+3% Y/Y) missed the consensus of $0.98.
According to Benzinga Pro, BX stock has gained around 35% in the last 12 months. Investors can gain exposure to the stock via EA Series Trust WHITEWOLF Publicly Listed Private Equity ETF (BATS:LBO) and Invesco Global Listed Private Equity ETF (NYSE:PSP).
Also Read: Blackstone Hits Two-Year Investment Peak, Anticipates Fed Rate Cuts Amid Easing Inflation: Report
Price Action: ROIC stock closed 20.7% higher at $15.74 on Tuesday. BX shares are up 0.47% at $142.00 premarket at the last check Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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