Home Alts News Moody National REIT II Completes Merger with Moody National REIT I

Moody National REIT II Completes Merger with Moody National REIT I

Moody National REIT II Inc., a publicly registered non-traded real estate investment trust, has completed its merger with Moody National REIT I Inc. The merger was overwhelmingly approved by Moody REIT I stockholders in May, as more than 96 percent of votes were in favor of the transaction.

REIT II’s investment portfolio now consists of approximately $465 million in assets, including 14 select service hotels under the Marriott, Hilton, and Hyatt brands located in major metropolitan markets throughout the U.S, and three notes receivable with a combined principal of $23.7 million.

“REIT I delivered income for its shareholders, paying an annual distribution of 8 percent for a span lasting approximately 6 years while maintaining the original invested capital and appreciating thereon,” said Brett Moody, CEO and chairman of the REITs. “In expanding its portfolio, REIT II will also continue to focus on delivering income along with asset preservation and appreciation.”

Moody REIT I stockholders received $10.25 per share, with the option of receiving shares of Moody REIT II common stock or cash, as long as no more than 50 percent of the total net merger consideration was paid in cash. The exchange ratio is equal to the net price per share divided by $25.00.

Approximately 8.9 million shares, or approximately 67 percent, elected to stay on board with Moody REIT II, and approximately 4.4 million shares, or approximately 33 percent, chose the cash consideration option.  Moody REIT I shares were originally sold for $10.00 each.

Moody National REIT I commenced its initial public offering in April 2009, and raised $133 million in investor equity through its initial public offering, follow-on offering and the sale of DRIP shares, according to Summit Investment Research. The offering closed in February 2015.

Moody National REIT II has raised nearly $210 million in investor equity since breaking escrow in July 2015, which includes the Moody REIT I share consideration.

Both REITs are sponsored by Moody National REIT Sponsor, an affiliate of the Moody National Companies, a full-service commercial real estate company that includes mortgage, development, management, realty, title and insurance divisions. Founded in 1996, Moody National Companies has managed more than $2 billion in commercial real estate.


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