Starwood Capital Issues Statement on Monmouth Board's Rejection of Superior Proposal

Rhea-AI Summary

Starwood Capital Group expressed disappointment over Monmouth Real Estate Investment Corp.'s rejection of its all-cash acquisition proposal. The firm claims its offer provides over $100 million more value to Monmouth shareholders compared to their existing merger agreement with Equity Commonwealth, with EQC's current stock price at $26.61. Starwood believes shareholders will be dissatisfied with the EQC transaction if approved by a two-thirds vote. Starwood is prepared to execute its fully financed offer to enhance shareholder value.

Positive

• Starwood's acquisition proposal offers over $100 million additional value for Monmouth shareholders compared to the EQC deal.
• Starwood's proposal is fully financed and actionable.

Negative

• Monmouth's board rejected a superior offer from Starwood, indicating a lack of support for potentially higher shareholder value.
• The EQC transaction requires a two-thirds shareholder vote, creating uncertainty for Monmouth's shareholders.

MIAMI, July 22, 2021 /PRNewswire/ -- Starwood Capital Group ("Starwood Capital"), a leading global private investment firm focused on real estate and energy, issued the following statement today in response to Monmouth Real Estate Investment Corp.'s (NYSE: MNR) ("Monmouth") Board of Directors' decision to reject an all-cash acquisition proposal from a controlled affiliate of Starwood Capital. Starwood Capital continues to believe its proposal provides substantially more value to Monmouth shareholders than its current merger agreement with Equity Commonwealth ("EQC"):

"This latest decision of the Monmouth board to recommend the EQC stock offer is highly disappointing and we firmly believe it is not in the best interests of all of Monmouth's shareholders. The enhanced Starwood Capital proposal provides Monmouth shareholders in excess of $100 million of additional value relative to the implied value of the Equity Commonwealth transaction based on EQC's closing price today of $26.61. We believe Monmouth's shareholders will express similar disappointment when they are asked to approve the EQC transaction by a vote of two thirds of outstanding shares, and we stand ready to execute our fully financed, fully actionable all-cash offer."

About Starwood Capital Group
Starwood Capital Group is a private investment firm with a core focus on global real estate, energy infrastructure and oil & gas. The Firm and its affiliates maintain 16 offices in seven countries around the world, and currently have approximately 4,000 employees. Since its inception in 1991, Starwood Capital Group has raised over $60 billion of capital, and currently has over $80 billion of assets under management. Through a series of comingled opportunity funds and Starwood Real Estate Income Trust, Inc. (SREIT), a non-listed REIT, the Firm has invested in virtually every category of real estate on a global basis, opportunistically shifting asset classes, geographies and positions in the capital stack as it perceives risk/reward dynamics to be evolving. Starwood Capital also manages Starwood Property Trust (NYSE: STWD), the largest commercial mortgage real estate investment trust in the United States, which has successfully deployed over $69 billion of capital since inception and manages a portfolio of over $18 billion across debt and equity investments. Over the past 29 years, Starwood Capital Group and its affiliates have successfully executed an investment strategy that involves building enterprises in both the private and public markets. Additional information can be found at starwoodcapital.com.

Media Contact

Tom Johnson or Dan Scorpio
tbj@abmac.com/dps@abmac.com
+1 (212) 371-5999

Investor Contact:

Innisfree M&A Incorporated
Scott Winter / Jonathan Salzberger / Gabrielle Wolf
+1 (212) 750-5833

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SOURCE Starwood Capital Group

FAQ

What was the outcome of Starwood Capital's acquisition proposal for Monmouth (MNR)?

Monmouth's Board rejected Starwood Capital's all-cash acquisition proposal, preferring an agreement with Equity Commonwealth (EQC).

How much additional value does Starwood claim to offer Monmouth shareholders compared to EQC?

Starwood claims its proposal provides over $100 million more value to Monmouth shareholders compared to the EQC merger.

What is the current stock price of Equity Commonwealth (EQC)?

The current stock price of Equity Commonwealth (EQC) is $26.61.

What does Starwood plan to do after Monmouth's rejection of its offer?

Starwood Capital is prepared to execute its fully financed, all-cash offer for Monmouth.

What are the implications of Monmouth's decision for its shareholders?

Shareholders may express disappointment if the EQC transaction is approved, as it may not provide the increased value offered by Starwood.