Healthcare Realty Trust Announces Update of Planned Asset Sales and Joint Ventures
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.
Vice President, Investor Relations