Healthcare Realty Trust Announces Full Year 2021 Acquisition and Disposition Activity

Rhea-AI Summary

Healthcare Realty Trust (NYSE: HR) revealed its 2021 acquisition and disposition activities, acquiring 44 buildings totaling 2.1 million square feet for $756 million at a cap rate of 5.3%, surpassing its guidance of $700 million. In Q4 alone, 19 buildings were acquired for $298 million. The company sold 17 medical office buildings for $188 million at a cap rate of 4.9%. Currently, HR has 14 buildings under letter of intent for acquisition, valued at $300 million, and plans to divest approximately $100 million in assets. With a total enterprise value of $6.1 billion, HR continues to expand its portfolio.

Positive

• Acquired 44 buildings for $756 million, exceeding guidance.
• Strong Q4 performance with 19 buildings acquired for $298 million.
• 14 additional buildings under letter of intent for $300 million.

Negative

• None.

NASHVILLE, Tenn., Jan. 04, 2022 (GLOBE NEWSWIRE) -- Healthcare Realty Trust Incorporated (NYSE:HR) today announced acquisition and disposition activity for the full year ended December 31, 2021. The Company acquired 44 buildings in 38 transactions totaling 2.1 million square feet for $756 million at a weighted average cap rate of 5.3%, exceeding the $700 million high end of the Company’s most recent acquisitions guidance. In the fourth quarter, the Company acquired 19 buildings in 16 transactions for $298 million, adding to the Company’s targeted clusters in eight markets including Nashville, Denver, Los Angeles and Austin.

During 2021, the Company's joint venture partner, TIAA, funded $90 million in 12 buildings. For the full year, the Company sold 17 medical office buildings totaling 905,000 square feet for $188 million at a weighted average cap rate of 4.9%.

The Company currently has 14 buildings under letter of intent to purchase for approximately $300 million that are expected to close in the first half of 2022. Approximately half of this volume is expected to be acquired through the joint venture with TIAA. The Company also has approximately $100 million under letter of intent to sell.

Healthcare Realty Trust is a real estate investment trust that integrates owning, managing, financing and developing income-producing real estate properties associated primarily with the delivery of outpatient healthcare services throughout the United States. As of September 30, 2021, the Company was invested in 245 real estate properties in 24 states totaling 17.4 million square feet and had an enterprise value of approximately $6.1 billion, defined as equity market capitalization plus the principal amount of debt less cash. The Company provided leasing and property management services to 13.8 million square feet nationwide.

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, 2020 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. The Company disclaims any obligation to update forward-looking statements.

Kara Smith
Investor Relations Manager
P: 615.269.8175

FAQ

What were Healthcare Realty Trust's total acquisitions in 2021?

Healthcare Realty Trust acquired 44 buildings for $756 million in 2021.

What was the cap rate for Healthcare Realty Trust's 2021 acquisitions?

The weighted average cap rate for the acquisitions was 5.3%.

How many square feet did Healthcare Realty Trust sell in 2021?

The company sold 905,000 square feet of medical office buildings for $188 million.

What is the expected impact of the new acquisitions on HR's portfolio?

The new acquisitions are expected to enhance HR's strategic clusters in key markets.

What is the enterprise value of Healthcare Realty Trust?

As of September 30, 2021, Healthcare Realty Trust had an enterprise value of approximately $6.1 billion.