NEW YORK (TheStreet) -- Shares of AmREIT Inc. (AMRE) are up 12.02% to $21.51 after Regency Centers Corporation (REG) made a public offering in a letter to AmREIT's board to acquire the company in a transaction worth $22 per share, payable in cash and, or stock.
The offer represents a 20% premium based on the average closing price of AmREIT's common stock over the last 30 days, Regency said.
AmREIT has not issued a statement regarding Regency's proposed offer.
Recency Centers already owns approximately 4.2% of AmReit's outstanding common stock.
Separately, TheStreet Ratings team rates AMREIT INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate AMREIT INC (AMRE) 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 revenue growth and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Despite its growing revenue, the company underperformed as compared with the industry average of 10.3%. Since the same quarter one year prior, revenues slightly increased by 9.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- AMREIT INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, AMREIT INC increased its bottom line by earning $0.70 versus $0.17 in the prior year. For the next year, the market is expecting a contraction of 55.0% in earnings ($0.32 versus $0.70).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income has significantly decreased by 86.0% when compared to the same quarter one year ago, falling from $8.40 million to $1.17 million.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market on the basis of return on equity, AMREIT INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
- You can view the full analysis from the report here: AMRE Ratings Report