MAA, Post Properties Complete Merger

Headquartered in Memphis, the new company will reportedly be the largest Sun Belt-focused multifamily REIT in the country.
Cityscape at Market Center II in Plano, Texas, an MAA property

Cityscape at Market Center II in Plano, Texas, an MAA property

Memphis, Tenn.—MAA and Post Properties Inc. have completed their merger, creating a company that has an equity market capitalization of about $11 billion and a total market capitalization of roughly $15 billion, the companies announced late last week. The combined company, headquartered in Memphis, will retain the MAA name and will continue to trade under the symbol “MAA” on the NYSE.

The transaction, which involved stock worth about $3.9 billion, had been announced in August and was touted as building the largest multifamily REIT that focuses on the Sun Belt. The combined company’s 10 largest markets by unit count reportedly are Atlanta; Dallas; Austin, Texas; Charlotte, N.C.; Raleigh, N.C.; Orlando, Fla.; Tampa, Fla.; Fort Worth, Texas; Houston; and Washington, D.C.

With the merger’s completion, David Stockert, former president & CEO of Post Properties, and Russell French and Toni Jennings, former directors of Post, joined the 10 existing members on MAA’s Board of Directors. H. Eric Bolton Jr. continues to serve as CEO & chairman of the Board of Directors, and Alan Graf Jr. remains the company’s Lead Independent Director.

The combined company reportedly should achieve annual gross overhead synergies of approximately $20 million, as well as enhanced operating margins. These savings are expected to be realized on full integration, which is expected to occur over the next 12 to 18 months.

“We have successfully completed early integration activities and are off to a great start,” Bolton said in a prepared statement. “We look forward to completing the integration work over the coming year and positioning to capture the full range of opportunities surrounding the merger.”

MAA did not reply to Commercial Property Executive’s request for additional information.

Up till the merger, MAA owned 79,170 apartment units; it now owns or has an ownership interest in 101,207 units, including communities currently in development.

Former Post common shareholders hold about 32.3 percent of the combined company’s common equity, with continuing MAA common shareholders holding the remaining approximately 67.7 percent.

Citigroup Global Markets Inc. acted as financial advisor, and Goodwin Procter LLP and Bass, Berry & Sims acted as legal advisors, to MAA. JP Morgan Securities acted as financial advisor, and King & Spalding LLP acted as legal advisor, to Post.

Image courtesy of Yardi Matrix