This year there have been five mergers in which a REIT has acquired another REIT. The unprecedented consolidation of publicly traded REITs is likely to speed up, analysts say.
In its analysis of the recent $11.2-billion merger of Healthcare Trust of America and Healthcare Realty Trust, The Motley Fool cited several factors it believes are setting the stage for more shotgun weddings between publicly traded REITs.
"Conditions remain ripe for additional REIT consolidation, especially given the likelihood that interest rates will rise. REITs will likely want to lock in the rates on new debt while they're low, which could spur them to complete a deal as soon as possible," Motley Fool's analysts said.
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