OAK BROOK, Ill.--(BUSINESS WIRE)--Inland Real Estate Investment Corporation (“Inland Investments”) announced today that Inland Diversified Real Estate Trust, Inc. (“Inland Diversified”), a REIT sponsored by Inland Investments has completed a previously announced merger with Kite Realty Group Trust (NYSE:KRG)("Kite Realty") in a stock-for-stock transaction valued at approximately $2.1 billion. The combined company will continue to trade under Kite Realty’s existing ticker symbol, KRG, on the New York Stock Exchange.
The merger agreement was approved on June 24, 2014 by over 94% of the Inland Diversified stockholders voting. Under the terms of the merger agreement, each outstanding common share of Inland Diversified was converted into 1.707 Kite Realty common shares.
“We are pleased to have successfully brought Inland Diversified full-cycle and to add this completed program to our over 40-year history of providing accessible and effective real estate investing to the marketplace,” said Mitchell Sabshon, president and chief executive officer of Inland Investments.
“After exceeding our capital raising goal of $1 billion, and accretively deploying the capital in an outstanding portfolio of multi-tenant retail properties, today’s merger with Kite Realty represents the culmination of the successful execution of Inland Diversified’s business plan,” said Barry Lazarus, former president and chief operating officer of Inland Diversified. “Through the merger, Inland Diversified stockholders benefit from maximum portfolio flexibility. They can either access liquidity via their publicly traded shares, or remain as an investor in a financially established company with the potential for substantial future earnings and increasing stock value.”
In addition to an annual distribution of 6%, a total return for each individual investor will differ depending on various factors, including, but not limited to, when they invested in Inland Diversified; whether or not they participated in the dividend reinvestment program; their ultimate decision to hold or sell their Kite Realty common shares; and, if they sell, the date and price at which they sell. Using the closing price of Kite Realty stock on July 1, 2014, the day the merger closed, each former share of Inland Diversified common stock would be equal to a value of $10.67. This would equate to an annualized total return of 7.39% for stockholders assuming an investment in September 2009, and 9.65% for stockholders assuming an investment in August 2012, or an average annualized return of approximately 8.52%.
About Inland Real Estate Investment Corporation
Inland Real Estate Investment Corporation is a sponsor of real estate securities and a part of The Inland Real Estate Group of Companies, Inc. The Inland Real Estate Group of Companies, Inc., is comprised of a fully-integrated group of legally and financially independent companies, engaged for over 40 years in the diverse facets of real estate such as property management, leasing, marketing, acquisition, real estate brokerage, development, redevelopment, construction, real estate financing and other related services.