Another investor is taking a run at Monmouth Real Estate Investment Corp.: Industrial Logistics Properties Trust has entered into a definitive agreement to acquire all of the outstanding shares of the industrial REIT for $21.00 per share in an all-cash transaction that is valued at $4 billion. The transaction price, which includes committed MNR acquisitions, transaction costs and the assumption of $409 million of debt, represents a 24% premium to the closing share price of $16.99 on December 18, 2020 and a 36% premium to the 30-day volume weighted average unaffected trading share price of $15.43.

The acquisition comes on the heels of a tug-of-war between Equity Commonwealth and Starwood Capital Group over Monmouth. The REIT had agreed to a sale to Equity Commonwealth despite Starwood's protests that it was the better deal. Ultimately, though, Monmouth's shareholders did not approve the sale to Equity Commonwealth.

It is easy to see why Monmouth is such a prize in the red-hot logistics market. The REIT owns 126 e-commerce focused industrial properties spread over 26 million square feet, with a weighted average remaining lease term of approximately 8 years. The portfolio is over 80% leased to investment grade rated tenants and generates annualized rental revenue of $169.4 million.