Healthcare Realty Trust Announces Update of Planned Asset Sales and Joint Ventures

Rhea-AI Summary

Healthcare Realty Trust (NYSE:HR) announced $1.14 billion in asset sales and joint venture contributions since July 2022, achieving a 4.86% cap rate. The company netted $1.03 billion after accounting for joint ventures and costs. An additional $100 million in sales is expected by February's end. The transactions, involving 34 properties sold and 11 contributed to joint ventures, aim to enhance portfolio quality by increasing exposure to multi-tenant, on-campus medical office buildings. The company successfully repaid a $423 million asset sale term loan as of year-end 2022.

Positive

• Completed $1.14 billion in asset sales and joint ventures since July 2022.
• Generated $1.03 billion in net proceeds from the sales.
• Repayment of a $423 million asset sale term loan, improving financial standing.
• Enhancement of portfolio quality by focusing on higher-growth, multi-tenant, on-campus medical office buildings.

Negative

• None.

NASHVILLE, Tenn., Jan. 04, 2023 (GLOBE NEWSWIRE) -- Healthcare Realty Trust Incorporated (NYSE:HR) today announced the completion of $1.14 billion of asset sales and joint venture contributions since July 2022 at a 4.86% cap rate. The Company generated net proceeds of $1.03 billion from these transactions after accounting for HR’s joint venture interest as well as closing-related prorations and capital adjustments. The Company has additional properties under contract to sell for more than $100 million. These additional sales are expected to close by the end of February.

The transactions described above include the sale or expected sale of 34 properties and the contribution of 11 properties to joint ventures. Collectively these properties have the following characteristics:

• 49% off-campus
• 30% single-tenant
• 12% non-MOB
• 2.38% average annual in-place contractual rent increases
• 91.0% occupancy for properties sold, 81.9% for joint ventures
  

These transactions enhance the quality and growth profile of the Company by increasing portfolio exposure to higher-growth, multi-tenant, on-campus medical office buildings.

The $1.125 billion asset sale term loan used for the merger-related special dividend had a balance of $423 million at September 30, 2022. With the fourth quarter completed sales of $350 million and expected sales of more than $100 million during the first quarter, the Company fully repaid the asset sale term loan at year-end.

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, 2022, the Company was invested in over 700 real estate properties totaling more than 40 million square feet and provided leasing and property management services to over 35 million square feet nationwide.

Additional information regarding the Company, including this quarter's operations, can be found at www.healthcarerealty.com.

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, 2021 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.

Ron Hubbard
Vice President, Investor Relations
P: 615.269.8290

FAQ

What are the recent asset sales by Healthcare Realty Trust (HR)?

Healthcare Realty Trust announced $1.14 billion in asset sales and joint venture contributions since July 2022.

How much net proceeds did HR generate from its asset sales?

HR generated net proceeds of $1.03 billion from the asset sales.

What is the expected amount for additional property sales by HR?

Healthcare Realty Trust has additional properties under contract to sell for over $100 million.

What was the cap rate for the asset sales completed by HR?

The completed asset sales were executed at a cap rate of 4.86%.

How has HR's portfolio changed following recent transactions?

The recent transactions increased HR's exposure to higher-growth, multi-tenant, on-campus medical office buildings.