New York REIT Jumps After Report of Merger Talks With JBG Cos.by
Shares rise as much as 13% after Reuters story on negotiations
NYC landlord has been exploring options since October
New York REIT Inc., a landlord that’s been under pressure from investors, surged as much as 13 percent after Reuters reported that the company is in talks to merge with closely held JBG Cos.
The real estate investment trust, whose holdings include a stake in Manhattan’s Worldwide Plaza, said in October it hired Eastdil Secured LLC to help explore strategic options. There is no certainty that the talks with JBG will result in a deal, Reuters reported Monday, citing people familiar with the matter.
New York REIT rose 4.4 percent to $10.26 at 3:34 p.m. New York time, after earlier climbing to as high as $11.07. The company has been under pressure from activist investors, including Land & Buildings Investment Management LLC’s Jonathan Litt, to boost its share price and overhaul its board.
JBG focuses on real estate in the Washington metropolitan area. It owns more than 30 million square feet (2.79 million square meters) of office, residential, hotel and retail properties, according to its website.
Jonathan Keehner, a New York REIT spokesman, declined to comment. A representative of JBG didn’t immediately return a call seeking comment.