11:01 AM EDT, 04/08/2024 (MT Newswires) -- Shares of Apartment Income REIT ( AIRC ) soared intraday on Monday after the rental property portfolio manager agreed to be acquired and taken private by Blackstone (BX) in an all-cash transaction valued at roughly $10 billion, including debt.

The manager of 76 rental housing communities concentrated primarily in coastal markets such as Miami, Los Angeles and Boston will receive $39.12 per share, a 25% premium to the company's closing stock price on Friday, according to a joint statement released Monday. Apartment Income REIT's ( AIRC ) shares surged 23% in Monday trade.

Blackstone Real Estate Partners X plans to invest more than $400 million to improve upon Apartment Income REIT's ( AIRC ) existing communities and may invest additional capital to fund further growth. Shares of Blackstone edged 1.7% higher.

"Apartment Income REIT ( AIRC ) represents the highest quality, large scale apartment portfolio we have ever acquired, and is located in markets where multifamily fundamentals are strong," Blackstone Real Estate Global Co-Head Nadeem Meghji said in a statement.

Rents have been increasing as homebuying weakness amid affordability challenges has buoyed rental demand. The median asking rent rose 2.2% year over year to $1,981 in February, accelerating at the fastest pace since January 2023, Redfin (RDFN) reported in March.

A separate report by the National Association of Realtors in March showed existing condo prices climbed 6.7% in February, outpacing the growth of single-family units.

The transaction is expected to close in the third quarter of 2024, pending shareholder and regulatory approvals. As part of the deal's terms, the real estate investment trust suspended payment of its quarterly dividend. Once the transaction completes, the REIT's shares will be delisted from the New York Stock Exchange.

"The business the (Apartment Income REIT ( AIRC )) team has built will be improved and expanded by collaboration with Blackstone and a shared focus on serving residents and investing wisely," said the company's Chief Executive Terry Considine.

Price: 38.40, Change: +7.05, Percent Change: +22.48