By Josh Beckerman
Real-estate investment trust Realty Income Corp. will replace
telecommunications company Windstream Holdings Inc. in the S&P
500 after the close of trading April 6.
S&P Dow Jones Indices said Windstream will join the S&P
MidCap 400. It said Windstream's pending spinoff of some network
assets into an independent, publicly traded real-estate investment
trust will make the company "more representative of the mid-cap
market space." Windstream said in July that the move would help it
accelerate network investments and significantly reduce debt.
Inclusion in the S&P 500 is typically a boon for a stock as
index-tracking funds that follow the S&P 500 will need to buy
its shares at that time.
In after-hours trading, Realty Income rose 2.6% to $52.38, while
Windstream was down two cents to $7.42.
Another REIT, Douglas Emmett Inc., will replace Realty Income in
the MidCap 400.
Casino-equipment company International Game Technology is also
leaving the MidCap 400 due to its pending acquisition by Italian
lottery company Gtech SpA.
Write to Josh Beckerman at josh.beckerman@wsj.com
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