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Spirit Realty Reveals New $250M Stock Repurchase Program, Further Enhances Corporate Governance

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Spirit Realty Capital Inc., a premier net-lease real estate investment trust that primarily invests in high-quality, operationally essential real estate, subject to long-term, net leases, recently revealed that its Board of Directors has authorized a new stock repurchase program for up to $250 million of its common stock to be undertaken within 18 months from the date of authorization.

Over the past decade, Spirit has become an industry leader and owner of income-producing, strategically located retail, industrial and office properties providing superior risk adjusted returns and steady dividend growth for our stockholders, according to a prepared statement.

Jackson Hsieh, president and CEO of Spirit says that “Having repurchased $200 million of our common stock year to date, we are pleased that our Board has authorized a new $250 million share repurchase program, which demonstrates the strength of our commitment to shareholder value creation. To the extent we make any repurchases under the program, we will do so on a leverage neutral basis by year end.  Further, we continue to work toward best in class, shareholder-friendly corporate governance, and we believe amending our bylaws to reduce the stockholder vote required to change or repeal the bylaws and to adopt new bylaws gives our shareholders an even greater voice as we continue forward on our stated path.”

Repurchases under the stock repurchase program may be made in open market transactions from time to time, in privately negotiated transactions or otherwise, in accordance with applicable securities laws and other restrictions, with the amount and timing of repurchases depending on management’s ongoing assessment of the capital needs of the business, prevailing market prices, general economic and market conditions and other considerations. The company may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases of its shares under the stock repurchase program, according to prepared release.

The stock repurchase program does not obligate the company to acquire any particular amount of common stock and may be extended, modified, suspended or discontinued at any time at the company’s discretion.

Additionally, on August 10, 2017, the board amended and restated the bylaws of the company to reduce the stockholder vote required to alter or repeal any provision of the bylaws and to adopt new bylaws from the affirmative vote of two-thirds of all the votes entitled to be cast on the matter to the affirmative vote of a majority of all the votes entitled to be cast on the matter. Under the amendment, the Board continues to have the power to adopt, alter or repeal any provision of the bylaws and to make new bylaws, co-extensive with the right of the stockholders of the company.