Healthcare Realty Trust Incorporated reports developments as a healthcare REIT focused on owning, operating and developing medical outpatient buildings in the United States. Recurring news centers on quarterly earnings releases, portfolio operations, general company activities and industry trends tied to outpatient healthcare real estate.
Corporate updates also cover financing and capital-structure actions by its operating partnership, Healthcare Realty Holdings, L.P., including unsecured debt programs and exchangeable senior notes guaranteed by the parent company. Other recurring themes include governance changes, shareholder matters, material agreements and disclosures involving the REIT’s common stock.
Healthcare Realty Trust shareholders overwhelmingly approved the merger with Healthcare Trust of America on July 15, 2022, with 79% of outstanding shares voting in favor, representing 92% of votes cast. The strategic business combination, initially announced on February 28, 2022, will close on or around July 20, 2022. Shareholders will receive one share of HTA stock for each share of Healthcare Realty stock. The combined entity will continue under the Healthcare Realty name, trading under the ticker symbol HR.
Healthcare Realty Trust (NYSE: HR) has received favorable recommendations from both ISS and Glass Lewis for shareholders to vote 'FOR' its upcoming merger with Healthcare Trust of America (NYSE: HTA) at the special meeting scheduled for July 15, 2022. The merger includes a 1:1 stock exchange ratio and a special cash dividend of $4.82 per share, totaling $1.1 billion. Funding for this dividend will primarily come from asset sales, with agreements in place for $807 million in contractual sales and $295 million from properties under letter of intent.
Healthcare Realty Trust (NYSE: HR) has declared a cash dividend of $0.2010 per share, payable on July 19, 2022 to stockholders of record as of July 14, 2022. This pro-rated dividend reflects the company’s regular quarterly amount for the period beginning on the last record date of May 16 and ending on July 14. The dividend adjustment is tied to the upcoming merger with Healthcare Trust of America (HTA), expected to close on July 20, 2022. Post-merger, HR aims to continue its regular quarterly dividend payments.
Healthcare Realty Trust has successfully secured agreements from over 97% of HR Notes holders to participate in an exchange offer, as of the Early Consent Date on June 28, 2022. The company aims to exchange HR Notes for new notes issued by Healthcare Trust of America Holdings, LP, which will amend restrictive covenants in the existing indenture. Significant participation rates include 99.62% for the 2.050% Senior Notes due 2031. The Exchange Offers are scheduled to close on July 20, 2022, and are contingent on the successful completion of a planned merger with Healthcare Trust of America.
Healthcare Realty Trust (NYSE: HR) is focused on finalizing its merger with Healthcare Trust of America (NYSE: HTA). This strategic combination aims to create a leading medical office building REIT with enhanced market scale and operational synergies. Shareholders will vote on the merger on July 15, 2022, with a projected closing date around July 20, 2022. The companies believe this merger will provide increased liquidity, a larger development pipeline, and significant cost efficiencies. Shareholder support for the deal has been favorable, with no concerns expressed by Land & Buildings since its announcement.
Land & Buildings Investment Management opposes Healthcare Realty's merger with Healthcare Trust of America (NYSE: HTA) and intends to vote against the deal at the July 15 Special Meeting. They argue that HTA's lower quality portfolio and higher debt levels will negatively impact HR's valuation. Moreover, they criticize HR's management for not engaging with Welltower, whose all-cash offer provides a 28% premium over HR's current share price. Investor disapproval is evident, with an 11% drop in share price following the merger announcement.
Healthcare Trust of America, Inc. (HTA) announced its operating partnership will commence exchange offers for all validly tendered and accepted HR Notes, currently issued by Healthcare Realty Trust Incorporated (HR), in light of the pending merger expected by July 20, 2022. The exchange involves newly issued HTA Notes, with details regarding interest rates and amounts for various HR Notes specified. The offers are conditioned on completion of the merger and will expire on July 20, 2022, unless extended. The proposed amendments to the HR Notes' indenture will eliminate restrictive covenants.
Healthcare Trust of America (NYSE: HTA) reported Q1 2022 net income of $0.08 per diluted share and Funds From Operations (FFO) of $0.40 per share. Normalized FFO, adjusted for merger-related costs, was $0.44 per share. The company experienced Same-Property Cash Net Operating Income growth of 0.8%, impacted by increased operating expenses. HTA is undergoing a merger with Healthcare Realty Trust (NYSE: HR), valuing the transaction at $35.08 per share for HTA investors. Quarterly dividends of $0.325 will be paid on July 15, 2022.
Healthcare Trust of America (HTA) has reaffirmed its commitment to its merger agreement with Healthcare Realty Trust (HR) following HR's rejection of an unsolicited acquisition proposal. The merger, unanimously approved by both companies' Boards, aims to create a leading medical office building REIT with significant market presence and operational synergies. Shareholders of HTA will receive an implied value of $35.08 per share, including a special cash dividend of $4.82. The merger is expected to close in Q3 2022, contingent on shareholder approvals.
Healthcare Realty Trust has confirmed an unsolicited acquisition proposal from a REIT, referred to as Party F, to buy all outstanding shares for $31.75 each. The Board unanimously rejected this offer, deeming it inferior to their planned merger with Healthcare Trust of America (HTA). This strategic merger aims to create a leading medical office building REIT, enhancing market scale and operational efficiency. The transaction is anticipated to close in Q3 2022, pending shareholder approval.