Apartment Income REIT Corp. has released its financial and operational update for the quarter ending April 7, 2024, following the announcement of a merger agreement with Apex Purchaser LLC, Aries Purchaser LLC, and Astro Purchaser LLC, collectively known as the "Parent Parties," which are affiliates of Blackstone Inc.
In the period leading up to the merger, Apartment Income REIT Corp. reported a significant increase in its financial metrics. Specifically, the company's stock price has risen to $39.12 per share as of the effective time of the merger, representing a notable surge in value.
Additionally, the company has reaffirmed its commitment to maintaining the rights and privileges of its unitholders. As a result of the merger, the partnership's common units, preferred units, LTIP units, and Class I High-Performance Partnership units will remain issued and outstanding, with no action required on the part of the unitholders.
In terms of liquidity options, the merger agreement stipulates that unitholders can still exercise their redemption rights in accordance with the terms of the partnership. However, following the closing of the merger, the surviving corporation will become a private entity, and the company's common stock will no longer be listed on the NYSE. Consequently, unitholders will no longer be able to redeem their units for shares of the company's common stock after the merger.
The value of the partnership units will now be determined based on cash settlements, with the redemption price calculated in accordance with the terms outlined in the merger agreement.
Despite the merger, the partnership LTIP units will continue to remain outstanding and subject to the terms of the partnership agreement, as amended by the LPA amendment.
Furthermore, the merger will not result in the redemption of units in the partnership, and each unitholder will retain their rights and privileges, continuing to participate in the economics of the business in proportion to their units.
The impact of the merger on the partnership's preferred units and Class I High-Performance Partnership units will result in these units remaining outstanding post-merger, subject to the terms of the partnership agreement, as amended by the LPA amendment.
It's important to note that holders of units in the partnership will not have voting rights on the merger, as the partnership itself is not being merged. Additionally, the merger is not expected to trigger taxable events for the partnership units, and holders are encouraged to consult their tax advisors for personalized guidance.
The market has reacted to these announcements by moving the company's shares -0.1% to a price of $38.38. If you want to know more, read the company's complete 8-K report here.
