Amerant Bancorp completes $ 135 million sale and leaseback of its Coral Gables headquarters
The transaction results in a significant increase in capital, demonstrates the commitment to increase the percentage of productive assets in relation to total assets
CORAL GABLES, Florida, December 15, 2021 (GLOBE NEWSWIRE) – Amerant Bancorp Inc. (NASDAQ: AMTB) (the “Company” or “Amerant”) announced today that its subsidiary, 220 Alhambra Properties LLC (“220 Alhambra”), has completed the sale of its head office in Coral Gables, FL to FNLI Audax LLC in a previously disclosed all-cash transaction of $ 135 million.
The building located at 220 Alhambra Circle, Coral Gables, Florida 33134, comprises approximately 177,000 square feet of office space, 134,000 square feet of parking space and serves as the head office of Amerant Bancorp Inc. As of September 30, 2021 , the net book value of the property was $ 71.3 million. In the fourth quarter of 2021, the Company expects to record a pre-tax gain of approximately $ 62.4 million, net of approximately $ 2.6 million of transaction costs, and the gain from the sale will be taxable at the applicable overall tax rate. The Company expects the tangible book value per common share to increase by approximately $ 1.22 per common share as a result of this event.
As part of this transaction, 220 Alhambra entered into an 18-year triple net sale-leaseback agreement at an approximate rate of $ 43 per square foot in the first year. The Company expects to record a right of use and lease liability of $ 91.4 million under this lease as at December 31, 2021.
“The current market conditions, combined with the terms of the sale and leaseback agreement, make this a very positive decision for the company in the short and long term,” said Jerry Plush, vice president and CEO of Amerant. “We have previously stated that one of our goals is to reduce the level of fixed assets on our balance sheet, and this transaction is an important step towards that goal.”
Plush added, “We fully intend to maintain our headquarters in the town of Coral Gables and continue to support the surrounding community for many years to come. “
STREAM Capital Partners was Amerant’s exclusive real estate advisor on this transaction.
About Amerant Bancorp Inc. (NASDAQ: AMTB)
Amerant Bancorp Inc. is a banking holding company headquartered in Coral Gables, Florida since 1979. The Company operates its business through its principal subsidiary, Amerant Bank, NA (the “Bank”), as well as its other subsidiaries: Amerant Investments, Inc., Elant Bank and Trust Ltd. and Amerant Mortgage, LLC. The Company provides deposit, credit and wealth management services to individuals and businesses in the United States, as well as to a selection of international clients. The bank, which has been in existence for over 40 years, is the second largest community bank headquartered in Florida. The Bank operates 24 banking centers – 17 in South Florida and 7 in Houston, Texas. For more information, visit Investor.amerantbank.com.
Caution regarding forward-looking statements
This press release contains “forward-looking statements” within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, including statements regarding the estimated impact of the sale-leaseback transaction on the Company’s financial statements for the period. year ending December 31. , 2021, the estimated increase in the tangible book value per common share as a result of this transaction as well as statements regarding the objectives, expectations and intentions of the Company and other statements which are not historical facts. All statements other than statements of historical fact are statements which may be forward-looking statements. You can identify these forward-looking statements by using words such as “could”, “will”, “anticipate”, “assume”, “should”, “indicate”, “the”, “,”, “dedicated”, “create And other similar words and phrases from the future.
Forward-looking statements, including those regarding our beliefs, plans, objectives, goals, expectations, expectations, estimates and intentions, involve risks, uncertainties and other factors, which may be beyond our control, and which may cause the actual results of the Company, the performances, the achievements or the financial position are materially different from the future results, performances, achievements or financial position expressed or implied by these forward-looking statements. You should not rely on forward-looking statements as predictions of future events. You should not expect us to update any forward-looking statements, except as required by law. All forward-looking statements, whether written or oral attributable to us, are expressly qualified in their entirety by this warning, together with the risks and uncertainties described in the “Risk Factors” section of our annual report on Form 10-K for the year ended. the 31st of December. , 2020, in our quarterly report on Form 10-Q for the quarter ended June 30, 2021 and in our other documents filed with the United States Securities and Exchange Commission (the “SEC”), which are available on the website SEC Web www.sec. govt.
Silvia M. Larrieu