UPDATE 1-US REITS AvalonBay, Equity Residential near deal to merge, Bloomberg News reports
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Adds details from WSJ report in bullets 1-3,5
May 20 (Reuters) - U.S.-based real estate investment trusts AvalonBay Communities AVB.N and Equity Residential EQR.N are nearing a deal to merge, Bloomberg News reported on Wednesday, citing people familiar with the matter.
Under the deal, AvalonBay shareholders would receive 2.793 shares of Equity Residential common stock for each share of AvalonBay common stock owned, the Wall Street Journal reported, citing sources.
AvalonBay shareholders would be expected to own a little over 51% of the combined entity, which will pay out an initial annual dividend to shareholders of $2.81 per share, the WSJ said.
An announcement on the deal could come as soon as Thursday, the reports said.
Reuters could not immediately verify both reports. AvalonBay Communities and Equity Residential did not immediately respond to Reuters' request for a comment on the reports.
AvalonBay holds a market value of about $26 billion and Equity Residential is valued at nearly $25 billion, according to LSEG-compiled data.
AvalonBay owns or holds ownership interest in 319 apartment communities with 98,271 apartment units in the U.S., while Equity Residential owns 312 rental properties consisting of 85,211 apartments.