NEW YORK (TheStreet) -- New York REIT (NYRT)  shares are diving 7.97% to $9.01 on Thursday morning following the announcement that it has agreed to combine with privately-held JBG to form a $8.4 billion real estate investment trust. 

New York REIT, a Manhattan office and retail landlord, will acquire all of JBG's properties as well as its management business. The combined company will be renamed as JBG Realty Trust and will focus on New York and Washington,DC.

"We believe that the expertise of the JBG management team is recognized throughout the industry and that this combination will provide the NYRT stockholders with a unique opportunity to participate in the value creation potential that this combination will bring," said Randolph C. Read, Chairman of the Board of NYRT. 

The new company's headquarters will be Chevy Chase, MD with a regional office in New York City.

Separately, TheStreet Ratings currently has a "Hold" rating on the stock with a letter grade of C.

The company's strengths can be seen in multiple areas, such as its compelling growth in net income, solid stock price performance and notable return on equity. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and poor profit margins.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.

You can view the full analysis from the report here: NYRT

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