MAA and Post Properties, Inc. Plan $17B Merger

The merger will create the leading Sunbelt-focused apartment platform.
Rendering of Post's in-progress Post Centennial Park in Atlanta

Rendering of Post’s in-progress Post Centennial Park in Atlanta

AtlantaMAA has agreed to buy Post Properties Inc. for approximately $3.9 billion in stock, creating the largest Sunbelt-focused multifamily REIT with nearly 105,000 units across 317 properties, valued at $17 billion with equity market capitalization of $12 billion.

“The combination of MAA and Post will establish the leading apartment real estate platform focused on the high-growth Sunbelt region of the country with significant competitive advantages to drive superior value for our shareholders, residents and employees,” H. Eric Bolton, Jr., MAA’s chairman and CEO, said in a prepared release. “The combined company will capture a broader market and submarket footprint, with improved rental price-point diversification that will support an enhanced level of performance over the full real estate cycle.”

Multifamily experts agree this is a significant merger in the industry as markets such as Dallas, Austin, Nashville, and Tampa have been a hot-bed for both occupant and investor activity and this merger culminates the combination of MAA and Post in a powerful unification.

“The timing makes sense, with the new SEC and IRS structures allowing for REITs to engage as a new category and as the real estate market as a whole has excelled throughout the Sunbelt region,” Kurt M. Westfield, director for the WC Companies, told MHN. “The sector is performing incredibly well, with multifamily the darling of the commercial world at the moment. With over 100,000 total units under management as a result of this merger, the footprint will be larger and the market in some of the dense regions can be internally set by the shear force and volume the MAA/Post brand will represent.”

The philosophy of the combined company will continue the strategy both have shown over the years: to maintain strategic diversity across urban and suburban locations in large and secondary markets within the high-growth Sunbelt region of the U.S.

Its 10 largest markets by unit count will be Atlanta, Dallas, Austin, Charlotte, Raleigh, Orlando, Tampa, Fort Worth, Houston and Washington, D.C.

“This merger redefines the combined company in terms of product, capability and capacity for consistent growth,” David P. Stockert, Post’s CEO and president, said in the release. “Its unique position in the apartment REIT space and strength of its financial position should drive an advantageous cost of capital and value for shareholders of both companies.”

According to Bolton, the Post development platform, supported by the newly combined company platform, will expand external growth and accretive capital recycling opportunities for MAA.

The merger is expected to close during the fourth quarter of this year. Upon completion, the company will have its corporate headquarters in Memphis, Tenn., and will go by the MAA name.

Rendering via The Atlanta Journal-Constitution