Through September 2003, there has been a flurry of merger and acquisition activity in the REIT industry, already far surpassing 2002 levels. There have been eight deals valued at $5.4 billion in the first nine months of 2003. In comparison, there was only one deal in all of 2002. The largest deal in 2003 has been Developers Diversified Realty’s (NYSE: DDR) $1.84 billion acquisition of JDN Realty. The largest and only M&A deal in 2002 was General Growth Properties’ (NYSE: GGP) $440 million acquisition of JP Realty.
| 2003 M&A Activity |
| Acquiror |
Target |
Completed Date |
Transaction Value* |
| Pan Pacific Retail Prop. |
Center Trust |
Jan–03 |
600 |
| Equity One |
IRT Property |
Feb–03 |
430 |
| GS Capital Partners |
National Golf Properties |
Feb–03 |
1,000 |
| Philips Edison, Ltd. |
Aegis Realty, Inc. |
Mar–03 |
N/A |
| Developers Diversified Realty |
JDN Realty |
Mar–03 |
1,840 |
| Friedman, Billings, Ramsey Group |
FBR Asset Investment |
Mar–03 |
741 |
| Cornerstone Realty Income |
Merry Land Properties |
May–03 |
136 |
| CNL Hospitality Corporation |
RFS Hotel Investors, Inc. |
July–03 |
688 |
| *Data in millions of dollars.
Source: NAREIT. |