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Healthcare Realty Trust to sell $1.1B in assets

Nashville, Tenn.-based Healthcare Realty Trust reported progress regarding its strategic combination with Scottsdale, Ariz.-based Healthcare Trust of America in a July 8 press release. The transaction consideration includes a 1:1 stock exchange ratio and a special cash dividend of $4.82 per share to HTA shareholders, which totals $1.1 billion.

HRT expects to fund the $1.1 billion dividends through $807 million in asset sales and joint venture transactions, as well as 10 properties under the letter of intent with three counterparties for $295 million, all at a blended cap rate of 4.8 percent. HRT also announced that it is in active discussion with multiple counterparties regarding the sale of additional properties valued at more than $600 million at similar cap rates. 

Todd Meredith, president and CEO of Healthcare Realty, notes that significant progress has been made in completing the strategic combination. 

"With these transactions, we have secured funding for the special cash dividend at an attractive cost of capital. We expect to continue to positively shape the combined company’s portfolio and source accretive capital through more asset sales and joint venture investment," Mr. Meredith said. 

The transaction is expected to close around July 20, subject to customary closing conditions, including the approval of both Healthcare Realty and Healthcare Trust of America shareholders.

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