San Diego commercial real estate owner-operator Realty Income Corp. said Monday it is acquiring Spirit Realty Capital in an all-stock deal valued at $9 billion-plus.
Realty Income does business as a real estate investment trust, or REIT, which trades like a stock on major exchanges. It owns a vast portfolio of income-producing properties such as convenience stores and shopping centers, income from which is distributed to shareholders regularly.
Spirit Realty is a Dallas-based REIT. Realty Income is listed as the nation’s 8th largest REIT as measured by market capitalization, while Spirit Realty is the 44th largest.
According to a Realty Income news release on the buyout, the after-purchase entity will result in a $63 billion company, “enhancing Realty Income’s size, scale, and diversification to expand its runway for future growth.”
The release also said the combined portfolio of the two is expected to result in reduced rent concentration in nine of Realty Income’s top 10 industries and 18 of its top 20 clients while increasing rents from $3.8 billion to $4.5 billion.
The company boasts that it has declared 640 consecutive stock monthly dividends in its 54-year operating history, increasing the dividend 122 times since the company went public in 1994.
Spirit Realty has a portfolio of 2,064 retail, industrial and other properties in 49 states leased to 345 tenants representing 37 industries. As of June 30, the properties were approximately 99.8% occupied, the release said.
Wall Street investors weren’t sure of the deal based on their reaction Monday. Shares of Realty Income slid 5.67% to close at $46.22 in trading.
The REIT’s share price has been on a decline since the first of the year, mirroring the ongoing decline in commercial real estate over the past year.
Shares of Spirit jumped over 7.8% in trading on Monday with a share price closing at $34.89.
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The ever-popular San Diego-based fast food restaurant operator Jack in the Box has announced the opening of its inaugural store in Kentucky, marking its first foray into the Bluegrass State.
This expansion follows closely on the heels of the company’s recent market entry into Salt Lake City.
The company oversees a network of over 2,180 restaurants in 21 states.
According to a news release, the new restaurant features Jack’s “innovative CRAVED image, which includes a new restaurant image package with bold colors and signage.”
The company said it has additional locations planned throughout Louisville for future development.
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The local office of personal wealth advisor UBS said it is the presenting sponsor for Art San Diego in 2023, which runs Nov. 3-5 at the San Diego Convention Center. The show features exhibits showcasing pieces by prominent international, national and local artists.
Through the Access to Art program, UBS and Art San Diego are partnering to provide select charities and the communities they serve with educational and marketing opportunities in art, design and business development.
According to a news release, Access to Art was launched in 2018 to focus on the education, development and protection of children via art.
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San Diego Latin America and Caribbean retail warehouse operator PriceSmart said revenues for the fourth quarter of fiscal year 2023 increased 9.5% to $1.12 billion compared to $1.02 billion in the comparable period of the prior year.
For the quarter, sales increased 10% to $1.09 billion from $989.9 million in the year-ago quarter.
Foreign currency exchange rate fluctuations impacted net merchandise sales positively by $36.2 million, or 3.6%, versus the same period in the prior year.
The Company said in a news release that it had 51 warehouse clubs in operation as of Aug. 31 compared to 50 warehouse clubs a year ago.
Total revenues for the 12 months ended Aug. 31 increased 8.5% to $4.41 billion compared to $4.07 billion a year ago.
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Irvine-based affordable housing developer Jamboree Housing Corp. announces the opening of the Milejo Village Supportive Housing Development in San Ysidro, its newest project.
The project was funded with the help of a Home Investment Partnerships Grant provided to San Diego by the federal Department of Housing and Urban Development and administered by the San Diego Housing Commission.
This new community project will offer vital housing to senior citizens and families battling homelessness, along with several other outreach programs for the area’s underserved communities, according to a news release.
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Since Oct. 1, property owners in San Diego enrolled in the National Flood Insurance Program have been receiving a 15% discount on their premiums.
According to a news release, the discount is due to city hall’s successful enrollment in the Federal Emergency Management Agency‘s Community Rating System, a program that rewards communities that achieve minimum floodplain management standards.
According to the FEMA, one inch of floodwater can cause as much as $25,000 in damage.
More than 14,000 acres of land in San Diego have an elevated risk of flooding during a rain event. To help protect these areas, the city regulates development to higher standards.
“San Diego’s floodplain management program is rooted in doing what’s best for the community, and the city is committed to continuously improving its program to make things better for the city’s residents,” according to the release.
For more information about the city Stormwater Department and Floodplain Management Program, click here: sandiego.gov/floodplain.
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San Diego medical science research center the Salk Institute has appointed Jerry Sheehan as its first Chief Information Officer starting Dec. 4.
Sheehan, who previously served as a VP and CIO at San Diego State University, is known for “driving innovation in information technology and fostering academic and private sector partnerships,” according to a news release.
In his new role, the Institute said Sheehan will collaborate with Salk’s leadership team to advance technology initiatives and scientific research, including a human brain atlas project led by Salk professors Joseph Ecker and Margarita Behrens.
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Finally, this bit of good news about our surprisingly strong local economy.
San Diego was the only top U.S. metro to report weekly earnings growth above 4% in October, according to the most recent Paychex | IHS Markit Small Business Employment Watch.
Paychex says its survey reaches one in 12 US private-sector employees, making its Employment Watch an industry benchmark. The report draws from the payroll data of 350,000 Paychex clients with fewer than 50 employees.
Nationwide, the survey found that growth in hourly and weekly earnings decelerated in October, consistent with a slow decline in economic activity. Hourly earnings growth across the county was below 4% for the fourth straight month.
Tom York is a Carlsbad-based independent journalist who specializes in writing about business and the economy. If you have news tips you’d like to share, send them to tom.york@gmail.com.
