TORONTO - In a significant move within the real estate sector, Tricon Residential Inc. (NYSE: NYSE:TCN, TSX: TCN) announced that the Ontario Superior Court of Justice has approved a plan of arrangement for Blackstone (NYSE:BX) Real Estate Partners X and Blackstone Real Estate Income Trust, Inc. to acquire all outstanding common shares of Tricon for US$11.25 each in cash.
This transaction, which is subject to customary closing conditions including regulatory approval under the Investment Canada Act, is expected to conclude in the second quarter of this year. Upon completion, Tricon's common shares will be delisted from both the New York Stock Exchange and the Toronto Stock Exchange. Additionally, the company plans to cease its status as a reporting issuer under Canadian securities laws and deregister the common shares under the U.S. Securities Exchange Act of 1934.
Tricon Residential, known for its portfolio of approximately 38,000 single-family rental homes in the U.S. Sun Belt and multi-family apartments in Toronto, Canada, has been a significant player in providing high-quality rental housing options. The company's development programs are contributing to addressing the housing supply shortage by delivering new rental homes and apartments.
Shareholders of Tricon Residential, who are seeking to receive the cash consideration for their shares in the transaction, have been provided with instructions in the management information circular dated February 15, 2024. For assistance, registered shareholders can contact the company's transfer agent and depositary, TSX Trust. Beneficial shareholders should reach out to their respective brokers or intermediaries to facilitate the surrender of their shares.
The approval marks a pivotal step towards the acquisition, which aims to enhance the real estate portfolio under the Blackstone umbrella. It is important to note that the forward-looking statements in the press release are based on current expectations and assumptions, and there is no guarantee that the transaction will be completed as planned.
InvestingPro Insights
As Tricon Residential Inc. (NYSE: TCN) gears up for a significant transition under the acquisition agreement with Blackstone entities, the latest metrics from InvestingPro show a company with a strong financial foundation. With a market capitalization of $3.31 billion and a robust gross profit margin of 70.39% for the last twelve months as of Q4 2023, Tricon's financial health appears resilient.
Investors and shareholders may find the company's recent performance particularly noteworthy, as Tricon has seen a substantial price total return of 26.07% over the last three months and an impressive 59.89% over the past six months. This uptrend is mirrored in the company's stock trading near its 52-week high, at 99.78% of this peak value. These figures underscore a period of strong returns, capturing the attention of market watchers and stakeholders alike.
Adding to the positive outlook, Tricon has maintained dividend payments for 14 consecutive years, offering a dividend yield of 2.08% as of the latest data, which could be an attractive point for income-focused investors. It's also worth noting that analysts predict the company will be profitable this year, as reflected in the net income growth expectations. However, they also anticipate a sales decline in the current year, which could be an area to watch closely.
For those seeking deeper insights and additional analysis, InvestingPro offers a wealth of InvestingPro Tips tailored to Tricon, including a total of 9 tips that can guide investors' decisions. To access these tips and more, visit https://www.investing.com/pro/TCN and consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.