Spirit Realty Capital and Cole Credit Property Trust II have completed their $7.4 billion merger. The two Arizona-based REITs will be managed by Spirit and will have a combined portfolio of about 1,900 properties across 48 states. "The new company's diversified portfolio and flexible balance sheet will enable us to capitalize on a range of future opportunities, including both organic direct portfolio acquisitions and strategic transactions," said Spirit CEO Thomas Nolan.
Spirit Realty Capital's shareholders voted to move forward with the merger with Cole Credit Property Trust II. The merger will create one of the largest publicly traded triple-net lease REITs in the U.S.
Shareholders of Cole Credit Property Trust II are expected to receive a yield of 20% to 42% when the nontraded real estate investment trust merges with Spirit Realty Capital, a REIT listed on the New York Stock Exchange. There will be no internalization or transaction fee paid to Cole, according to a presentation to investors. Dividend payment will continue without disruption.