Monmouth Real Estate Properties to Merge

As noted by EarlyBird with follow on comments from 2 whiteroses, Citadel West, Scott R and xerty Monmouth Real Estate Properties (MNR) will be merging with Industrial Logistics Properties (ILPT).

Monmouth has 1 preferred issue outstanding with a coupon of 6.125% (MNR-C) which can be seen here.

The company announcement can be read here.

Industrial Logistics Properties posted a presentation showing potential of the MNR-C issue being called–it is here on page 9.

The preferred shares go ex dividend next Friday (11/12) for 38.3 cents and now are trading at $25.46.

Thanks to all for digging on this one.

Disclousure–I have a full position in this preferred.

5 thoughts on “Monmouth Real Estate Properties to Merge”

    1. A4I – Depending on the time frame you’re talking about it seems as though the 8k you’ve linked (thanks btw!) seems to refute what you are saying… Neither the common shares or the preferred will live on beyond the Effective Time of the merger – i.e., the closing date… Section 1-6 (b): “Each share of common stock, par value $0.01 per share, of the Company (such shares, collectively, the “Company Common Stock”, and each, a “Company Common Share”) issued and outstanding immediately prior to the Effective Time (other than any shares of Company Common Stock to be canceled or converted pursuant to Section 1.6(d)) shall be converted into the right to receive twenty one dollars ($21.00) in cash, without interest (the “Merger Consideration”), subject to any applicable w6ithholding Tax specified in Section 2.2.” Section 1.6(e) says, “Each share of 6.125% Series C Cumulative Redeemable Preferred Stock, par value $0.01 per share, of the Company (such shares, collectively, the “Company Preferred Stock”, and each, a “Company Preferred Share”) issued and outstanding immediately prior to the Effective Time shall be converted into the right to receive the Preferred Stock Consideration and shall be canceled and cease to exist.,” and the “Preferred Stock Consideration” is defined as “the amount of $25.00 in cash plus all accumulated and unpaid dividends to, but not including, the Closing Date, per share of Company Preferred Stock, subject to adjustment pursuant to Section 1.8.” So yes MNR and MNR-C live on, but only as short termers, destined to be cancelled upon closing of the merger….

      Thanks for the link – I appreciate seeing the fate of MNR-C in the merger actually being spelled out in words…….. BTW, the definition of Preferred Stock Consideration is on p 81…. Spinning this another way, it looks as though a call of MNR-C is probably off the table now UNTIL it’s paid by the Preferred Stock Consideration whenever the merger closes….

      Did I miss anything???? What options do you see that a C holder will have?

      1. 1. It addresses those commenting about shares possibly going to the expert market. Doesn’t appear to be an option.
        2. If the deal falls thru or if it doesn’t, holders have options of what they want to do with their shares. They should stay tuned. This deal could fall thru just like the other one did, however likely or unlikely.
        3. A time frame is relative.

  1. The merger doc also says merger is likely to close mid-2022. So, likely we we have more than 1 dividend of $0.38 left. So perhaps a decent buy here at $25.40-ish?

    Not sure if this is meaningful, but when you try to place order at Schwab it gives the warnings ‘the issuer of this security is deficient in meeting the Exchange continued listing requirements. You may want to consider doing further research before placing this order. (DO840)’!

    Does this mean this is likely to go into the ‘expert market’ soon?

  2. I had MNR-C also.. another good payer going.. I thought old Zell would get MNR w EQC and had EQC till the merger was voted down by the shareholders. This offer is not much better if you have a big capital gains tax bill w a low basis in a taxable account..actually maybe worse. It would have been fun to see Zell build out another company. Still have to wonder what he does w EQC..stay tuned I guess. Bea

Leave a Reply

Your email address will not be published.