REIT M&A Activity Signals Investor Comfort with Current Valuations: Green Street
Description
Daniel Ismail, co-head of strategic research at Green Street, joined the REIT Report to discuss recent REIT M&A activity and its implications for the sector.
REIT M&A activity has been lively in 2025, with the pace expected to continue into 2026, especially if interest rates decline, Ismail said. At the same time, however, the size of transactions is about 80% smaller than over the past decade, he added.
Deals announced this month include the acquisition of Sotherly Hotels Inc. (Nasdaq: SOHO) by a joint venture backed by Kemmons Wilson Hospitality Partners and Ascendant Capital Partners, and the acquisition of Plymouth Industrial REIT, Inc. (NYSE: PLYM) by Makarora Management LP and Ares Alternative Credit funds.
Ismail pointed out that in a typical REIT M&A event, the premium to unaffected share price is about 15%. In the case of Plymouth Industrial, that premium stands at 50%, and jumps to 150% for Sotherly.
United States
