NEW YORK (TheStreet) -- Shares of Glimcher Realty Trust (GRT) soared to a 52-week high of $13.91 in morning trading Tuesday after Washington Prime Group (WPG - Get Report) announced it would acquire Glimcher in a cash-and-stock deal valued at approximately $4.3 billion, which includes debt.
The retail real estate investment trust values the deal at $14.20 a share, which represents a 34% premium to Glimcher's closing price of $10.59 on Monday. Glimcher shareholders will receive $10.40 in cash and 0.1989 shares of Washington Prime Group stock for each share of Glimcher they own.
Glimcher stock was up 30.52% to $13.82 at 9:51 a.m. More than 15.6 million shares had changed hands, compared to the average volume of 1,128,190.
Washington Prime stock, meanwhile, hit a 52-week low of $17.44. The stock was down 4.31% to $17.67 at 9:51 a.m. More than 2.8 million shares had changed hands, compared to the average volume of 1,359,220.
Separately, TheStreet Ratings team rates GLIMCHER REALTY TRUST as a "hold" with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate GLIMCHER REALTY TRUST (GRT) 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 increase in stock price during the past year and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- Net operating cash flow has slightly increased to $37.34 million or 1.41% when compared to the same quarter last year. Despite an increase in cash flow, GLIMCHER REALTY TRUST's cash flow growth rate is still lower than the industry average growth rate of 18.95%.
- GRT, with its decline in revenue, underperformed when compared the industry average of 11.6%. Since the same quarter one year prior, revenues slightly dropped by 8.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, GLIMCHER REALTY TRUST's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for GLIMCHER REALTY TRUST is rather low; currently it is at 23.53%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 0.29% significantly trails the industry average.
- You can view the full analysis from the report here: GRT Ratings Report
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