AmREIT To Explore Strategic Alternatives; Rejects Regency Centers' Offer

(RTTNews) - AmREIT, Inc. (AMRE) said Tuesday that its Board of Directors has determined to explore strategic alternatives to enhance stockholder value.

During the process, the company will continue to pursue its existing business plan.

AmREIT also said that its Board has rejected the previously announced unsolicited and conditional proposal by Regency Centers Corp. (REG) to acquire AmREIT for $22.00 per share.

In connection with the determination by the Board of Directors and as a part of its effort to ensure the orderly review of strategic alternatives, the Board elected to cause the Company to become subject to the Maryland Business Combination Act which, subject to limitations, prohibits certain business combinations between the Company and an "interested stockholder", defined generally as any person who beneficially owns 10% or more of the voting power of AmREIT's outstanding voting stock, or an affiliate thereof for five years after the most recent date on which the stockholder becomes an interested stockholder and thereafter imposes fair price and/or supermajority voting requirements on these combinations.

AmREIT has retained Jefferies LLC as its financial advisor and Morrison & Foerster LLP and Venable LLP as its legal advisors to assist the Board in its evaluation of strategic alternatives.

Separately, AmREIT reported net income for the second quarter of $1.1 million, or $0.05 per share, compared to $981,000, or $0.06 per share, for the same period in 2013.

Core Funds from Operations for the second quarter was $4.6 million, or $0.24 per share, compared to $4.1 million, or $0.25 per share, for the comparable period in 2013.

FFO for the second quarter was $4.4 million, or $0.22 per share, compared to $4.0 million, or $0.25 per share, for the comparable period in 2013.

Total revenue for the second quarter rose to $12.54 million from $10.74 million a year ago.

The company said it still expects full Year 2014 FFO of $0.98 to $1.02 per share and core FFO of $1.02 to $1.06 per share.