Although this merger might have been anticipated and is effectively a rationalization of already affiliated assets, it points out a couple of themes that continue to hold for much the REIT industry. First, there remains much consolidation that can take place, both within the industry and externally. Second, there are niches and situations that remain to be exploited. Tight markets or rising interest rates may be poison to some, but some companies will find a way to benefit from them. In Context With relatively low ratios of debt to total capitalization, AIC and CAX together will have room to lever up as they pursue future acquisitions.
Total returns are index values.