Inland American Real Estate Trust, Inc. today announced that it has successfully completed the previously announced spin-off of Xenia Hotels & Resorts, Inc. through the pro rata taxable distribution of 95% of the shares of Xenia common stock to Inland American’s stockholders. Immediately following the distribution, Inland American will continue to own approximately 5% of the outstanding shares of Xenia. Beginning today, Xenia’s common stock will commence trading on the New York Stock Exchange under the symbol “XHR.”
The separation of the two companies marks a significant step in the execution of Inland American’s long-term strategy. Moving forward, Inland American will seek to deliver value by continuing to concentrate on its student housing and multi-tenant retail platforms. The student housing platform will continue to be managed out of the Inland American Communities head office in Dallas and the multi-tenant retail platform will be managed out of the Inland American headquarters in Oak Brook.
On February 3, 2015, each Inland American stockholder received one share of Xenia common stock for every eight shares of Inland American common stock they held at the close of business on January 20, 2015, the record date of the spin-off. Inland American stockholders now own shares of common stock in both Inland American and Xenia. The number of Inland American shares held by stockholders will not change as a result of the distribution of Xenia stock.
“This is a big achievement for both Xenia and Inland American,” said Thomas P. McGuinness, president and CEO of Inland American. “This event will provide a significant opportunity for our stockholders who desire liquidity to execute that strategy, while also allowing other stockholders to maintain their position in Xenia and participate in the company’s potential upside.”
McGuinness continued, “This event is a key milestone related to the execution of Inland American’s strategy of creating long-term value for our stockholders. Having successfully completed the spin-off of Xenia, moving forward we will continue to focus on refining and growing our multi-tenant retail and student housing platforms. I would also like to wish Marcel Verbaas and his team at Xenia all the best as they embark on their promising and exciting future as an independent company.”
Goldman, Sachs & Co. and Morgan Stanley & Co. LLC are acting as financial advisors to Inland American in relation to the spin-off, Latham & Watkins LLP is acting as legal counsel to Inland American, Hunton & Williams LLP is acting as special tax counsel to Inland American and Venable LLP is acting as special Maryland counsel to Inland American.
Inland American Real Estate Trust, Inc. manages a large portfolio of commercial real estate assets with a focus on two asset classes - multi-tenant retail and student housing. As of September 30, 2014 Inland American owned 203 properties, representing approximately 23.5 million square feet of retail, industrial and office space, 8,318 student housing beds and 12,797 hotel rooms (all of which have been sold or spun-off to Xenia as described above).
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