SouthState Corporation Completes $457 Million Sale-Leaseback Transaction with Blue Owl Real Estate Capital
Winter Haven, FL, March 6, 2025 – SouthState Corporation (NYSE: SSB) announced the successful completion of its previously disclosed sale-leaseback transaction with Blue Owl Real Estate Capital LLC. The agreement involved the sale of 165 bank branch properties across six states for a total cash purchase price of approximately $457 million.
Key Transaction Details:
Property Locations: Alabama, Florida, Georgia, North Carolina, South Carolina, and Virginia.
Leaseback Terms:
Initial lease term: 15 years
Renewal options: Three consecutive five-year extensions
Annual rent escalation: 2%
Financial Impact:
The transaction resulted in a pre-tax gain of approximately $229 million after accounting for transaction-related expenses.
Proceeds from the sale will be used to restructure a portion of SouthState’s investment portfolio.
The company sold certain available-for-sale securities, leading to a pre-tax net loss approximately equal to the sale-leaseback net gain.
Reinvestment Strategy:
Proceeds will be reinvested into market-rate securities with an average duration of approximately three years.
The company anticipates immediate accretion to net income and earnings per share.
Continued Bank Operations:
SouthState will not close any branches or exit any markets as a result of this transaction.
Customers will continue receiving the same services at all affected locations.
Updated Financial Guidance:
SouthState’s management will provide updated guidance on the impact of this reinvestment strategy during its first-quarter earnings call.
Forward-Looking Statements:
This transaction and related financial outlook are subject to risks and uncertainties. For a detailed discussion, please refer to SouthState’s SEC filings.
