HTA - Healthcare Realty Trust updates on asset sales and JV transactions

• In its update on strategic combination with Healthcare Trust of America ( NYSE: HTA ), Healthcare Realty Trust ( NYSE: HR ) indicated that the transaction consideration includes a stock exchange ratio of 1:1 and a special cash dividend of $4.82/share to HTA shareholders which totals $1.1B.
• The company expects to fund the $1.1B special cash dividend to HTA shareholders through a combination of asset sales and joint venture transactions at a blended cap rate of 4.8%.
• The asset sale properties are 88.4% occupied, consistent with the overall portfolio.
• Proceeds are expected to be derived from properties under contract for $807M and properties under letter-of-intent for $295M.
• Transaction is expected to close on or around July 20, 2022.
• It is also in active discussions with multiple counterparties regarding the sale of additional properties valued at $600M+ at similar cap rates.
• Healthcare Realty Trust is also under LOI with three counterparties to sell 10 properties for a total of $295M which is expected to close by August-mid.
• Under transactions terms, the company expects to form a new JV with CBRE Investment Management wherein the proposed JV is expected to strengthen the combined company’s ability to increase investment volume by diversifying access to capital.
• Initially, the combined company is expected to contribute four HTA properties and retain a 20% interest in the JV.

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