NEW YORK (TheStreet) -- Shares of Kite Reality Group Trust (KRG) are up 2.16% to $6.39 in late-afternoon trading on Wednesday after the company announced it closed its merger deal with the privately held Inland Diversified Real Estate Trust, valued at $2.1 billion.
The transaction creates a $4 billion company, and provides a variety of significant financial and operating benefits, such as substantial cash flow, lower capital costs, a stronger balance sheet, and improved synergies from an expanded platform, said Kite Reality CEO John A. Kite.
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Separately, TheStreet Ratings team rates KITE REALTY GROUP TRUST as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate KITE REALTY GROUP TRUST (KRG) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in stock price during the past year and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including poor profit margins and weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows: