Monmouth Real Estate (MNR) announces merger with Equity Commonwealth (EQC).

Monmouth Real Estate Investment Corporation (MNR) announced today that it has agreed to merge with Equity Commonwealth (EQC) in an all-stock transaction valued at $3.4 billion.  Based on EQC's closing price on May 4, 2021, the EQC stock consideration is valued at $19.40 per Monmouth share.

As part of the merger announcement, Equity Commonwealth said that it would transition to the industrial real estate sector and sell its remaining four office properties.  EQC also noted it would have substantial post-closing cash balances of approximately $2.5 billion available to fund future growth.  EQC also expects to redeem Monmouth's outstanding $550 million 6.125% Series C Preferred Stock, resulting in $34 million of annual savings.

The transaction is expected to close in the second half of 2021 following shareholder approval of both Equity Commonwealth and Monmouth.