M&A Trends

From S&P Global Market Intelligence

With the announcement of new a classification for the S&P 500, the creation of the real
estate investment trust sector reveals one of the top sectors for announced U.S. M&A
activity year-to-date in 2016. Presently, announced U.S. real estate M&A deal value stands
at $132.4 billion, ranking as the third-leading sector for U.S. M&A behind health care at
Author $213 billion and information technology with $174 billion. In contrast, the restructured
financials sector now commands just $52.5 billion in announced U.S. M&A activity, making
Richard Peterson
it the third slowest sector for U.S. M&A this year ahead of consumer staples with $35.7
Senior Director
billion in deals and telecommunication services with $4.8 billion.

S&P Global Market Intelligence

+1 212 438 1083
richard.peterson
@spcapitaliq.com

This years leading announced U.S. real estate sector M&A deal is Chinas Anbang Insurance
Group Co., Ltd. agreeing to acquire Strategic Hotels & Resorts, Inc. from Blackstone Real
Estate Advisors for $8.35 billion on March 16, 2016. The deal also ranks as the twelfthlargest all-time U.S. real estate sector M&A deal. The second largest deal is Mid-America
Apartment Communities Inc. (NYSE:MAA) entering into a definitive merger agreement to
acquire Post Properties Inc. (NYSE:PPS) for $4.9 billion on August 15, 2016, followed by
Cousins Properties Incorporated (NYSE:CUZ) entering into a definitive agreement to acquire
Parkway Properties Inc. (NYSE:PKY) for $4 billion on April 28, 2016.
Of the top five U.S real estate sector M&A deals announced this year, three involve foreign
buyers. Aside from the aforementioned deal involving Chinas Anbang Insurance, Canadian
asset manager Brookfield was a buyer in two recent multi-billion deals, with Brookfield
Asset Management Inc. (TSX:BAM.A) acquiring the remaining 66.49% stake in Rouse
Properties, Inc. (NYSE:RSE) for approximately $2.57 billion, including assumed liabilities, on
January 16, 2016; and Brookfield Property Group LLC entering into a definitive agreement
to acquire the manufactured housing portfolio of NorthStar Realty Finance Corp.
(NYSE:NRF) for $2 billion on May 7, 2016.
Summary of Announced US Real Estate Sector M&A 2016YTD
Most Active Buyers/Investors by Number of
Transactions

S&P Global Market

Intelligence provides crossasset class research,
advisory services, and
quantitative analytics
to meet the changing needs
of todays investor.

Company Name
Physicians Realty Trust (NYSE:DOC)
Gramercy Property Trust Inc.
(NYSE:GPT)
STAG Industrial, Inc. (NYSE:STAG)
BRT Realty Trust (NYSE:BRT)
Terreno Realty Corp. (NYSE:TRNO)
LaSalle Investment Management Inc.
CIM Group, Inc.
Hines Interests Limited Partnership
Industrial Property Trust Inc.
Invesco Real Estate Limited

Deals
17
11
11
10
10
9
8
8
8
8

Merger & Acquisition Statistics

Valuation Summary
Total Deal Value($mm):
Average Deal Value:

M&A TRENDS September 19, 2016

WWW.SPGLOBAL.COM

Most Active Buyers/Investors by Total Transaction Size

Total
Company Name
($mm)
Anbang Insurance Group Co., Ltd.
8,274.91
Mid-America Apartment Communities Inc.
(NYSE:MAA)
5,028.60
Cousins Properties Incorporated (NYSE:CUZ)
4,000.47
Brookfield Asset Management Inc. (TSX:BAM.A)
2,575.84
Brookfield Property Group LLC
2,035.00
CommonWealth Partners, LLC
1,900.00
Qatar Investment Authority
1,565.17
Chelsfield Partners LLP
1,400.00
Olayan America Corporation
1,400.00
China Investment Corporation
1,383.00
Number of Deals by Transaction Ranges

132,452.34
49.81

Greater than $1 billion

$500 - $999.9mm

15
12

Average TEV/Revenue:
Average TEV/EBITDA:
Average Day Prior Premium(%):
Average Week Prior Premium(%):
Average Month Prior Premium(%):

21.64
44.15
13.47
14.68
13.92

$100 - $499.9mm
Less than $100mm
Undisclosed

195
2364
1182

Cancelled transactions may be included in these statistics.

Copyright 2016 2016 by S&P Global Market Intelligence, a division of S&P Global Inc. Redistribution, reproduction
and/or photocopying in whole or in part is prohibited without written permission. All rights reserved. STANDARD &
POORS, S&P and S&P 500 are registered trademarks of Standard & Poors Financial Services LLC. CAPITAL IQ is a
registered trademark of Capital IQ, Inc. S&P Capital IQ is a trademark of Standard & Poors Financial Services LLC.. All
rights reserved. No content (including ratings, credit-related analyses and data, model, software or other application or
output therefrom) or any part thereof (Content) may be modified, reverse engineered, reproduced or distributed in any form
by any means, or stored in a database or retrieval system, without the prior written permission of S&P. The Content shall
not be used for any unlawful or unauthorized purposes. S&P, its affiliates, and any third-party providers, as well as their
directors, officers, shareholders, employees or agents (collectively S&P Parties) do not guarantee the accuracy,
completeness, timeliness or availability of the Content. S&P Parties are not responsible for any errors or omissions,
regardless of the cause, for the results obtained from the use of the Content, or for the security or maintenance of any data
input by the user. The Content is provided on an as is basis. S&P PARTIES DISCLAIM ANY AND ALL EXPRESS OR
IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR
FITNESS FOR A PARTICULAR PURPOSE OR USE, FREEDOM FROM BUGS, SOFTWARE ERRORS OR DEFECTS,
THAT THE CONTENTS FUNCTIONING WILL BE UNINTERRUPTED OR THAT THE CONTENT WILL OPERATE WITH
ANY SOFTWARE OR HARDWARE CONFIGURATION. In no event shall S&P Parties be liable to any party for any direct,
indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or
losses (including, without limitation, lost income or lost profits and opportunity costs) in connection with any use of the
Content even if advised of the possibility of such damages.
Credit-related analyses, including ratings, and statements in the Content are statements of opinion as of the date they are
expressed and not statements of fact or recommendations to purchase, hold, or sell any securities or to make any
investment decisions. S&P assumes no obligation to update the Content following publication in any form or format. The
Content should not be relied on and is not a substitute for the skill, judgment and experience of the user, its management,
employees, advisors and/or clients when making investment and other business decisions. S&Ps opinions and analyses
do not address the suitability of any security. S&P does not act as a fiduciary or an investment advisor. While S&P has
obtained information from sources it believes to be reliable, S&P does not perform an audit and undertakes no duty of due
diligence or independent verification of any information it receives.
S&P keeps certain activities of its business units separate from each other in order to preserve the independence and
objectivity of their respective activities. As a result, certain business units of S&P may have information that is not available
to other S&P business units. S&P has established policies and procedures to maintain the confidentiality of certain non
public information received in connection with each analytical process.
S&P may receive compensation for its ratings and certain credit-related analyses, normally from issuers or underwriters of
securities or from obligors. S&P reserves the right to disseminate its opinions and analyses. S&P's public ratings and
analyses are made available on its Web sites, www.standardandpoors.com (free of charge), and www.ratingsdirect.com
and www.globalcreditportal.com (subscription), and may be distributed through other means, including via S&P publications
and
third-party
redistributors.
Additional
information
about
our
ratings
fees
is
available
at
www.standardandpoors.com/usratingsfees.
STANDARD & POORS and S&P are registered trademarks of Standard & Poors Financial Services LLC.

M&A Trends September 19, 2016

WWW.SPGLOBAL.COM