Taking months to finalize, the sweeping deal between Steward, its creditors and landlord Medical Properties Trust at times appeared impossible to finalize. All parties have been working around the clock to determine how to appropriately allocate proceeds from the sales and how to keep hospitals open.
Healthcare Realty Trust Incorporated just announced the completion of $338 million of asset sales during the fourth quarter of 2023 bringing full year additional dispositions to $656 million at an average cap rate of 6.6%.
The full year additional dispositions resulted in proceeds of $597 million as well as $59 million of seller financing across three transactions, including $14 million of seller financing in the fourth quarter. Proceeds were used for general corporate purposes, including the funding of development commitments and repayment of debt. Healthcare Realty had no outstanding balance on its revolving credit facility as of December 31, 2023.
The 2023 additional dispositions of $656 million do not include the $112.5 million of asset sales in January 2023 that fully repaid the July 2022 merger-related special dividend.
Healthcare Realty is a real estate investment trust that owns and operates medical outpatient buildings primarily located around market-leading hospital campuses. The company selectively grows its portfolio through property acquisition and development. As the first and largest REIT to specialize in medical outpatient buildings, Healthcare Realty’s portfolio includes more than 700 properties totaling over 40 million square feet concentrated in 15 growth markets.
In addition to the historical information contained within, the matters discussed in this press release may contain forward-looking statements that involve risks and uncertainties. These risks are discussed in filings with the Securities and Exchange Commission by Healthcare Realty Trust, including its Annual Report on Form 10-K for the year ended December 31, 2022 under the heading “Risk Factors,” and as updated in its Quarterly Reports on Form 10-Q filed thereafter. Forward-looking statements represent the company’s judgment as of the date of this release. Healthcare Realty disclaims any obligation to update forward-looking statements.
Source: HREI
Welltower remains interested in making a play for fellow real estate investment trust Healthcare Realty Trust after making an all-cash bid for it earlier this year.
Welltower, a REIT that owns senior housing, medical facilities and medical offices, made a $4.8B all-cash bid for Healthcare Realty Trust in February, The Wall Street Journal reported. The offer came soon after Healthcare Realty agreed to a merger with Healthcare Trust of America.
Welltower offered to pay the $163M termination fee that the Nashville-based Healthcare Realty would’ve had to pay for backing out of the $10B, mostly stock deal, but Healthcare Realty’s board decided it wasn’t a better offer than the merger and rejected it in March.
Welltower’s offer was for $31.75 a share, and it could make another offer, the WSJ reports. An acquisition would give Welltower a deeper medical office presence, an area it has already been growing in recent months.
In August, Welltower bought six medical office buildings in New York City via a joint venture with Aspect Health, paying $98M. It has also been picking up senior housing at a fast clip; last summer it spent $1.58B on a portfolio of 86 senior housing sites from Holiday Retirement. In November, it bought 14 senior housing properties managed by Watermark Retirement.
“Since pivoting to offense 13 months ago, Welltower is pleased to have executed on its value-driven investment thesis, largely through granular and off-market transactions completed at a significant discount to estimated replacement cost,” CEO Shankh Mitra said at the time, Senior Housing News reported.
Healthcare Realty’s shares jumped to $28.55 Monday, per the WSJ, an increase of 5.4%. Healthcare Trust’s fell by 1.6% to $29.96.
Source: Bisnow
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