Healthcare Realty Trust Incorporated HR has announced the pricing of its public offering of 8 million newly issued common shares. This is likely to generate gross proceeds of $268 million for this Nashville, TN-based healthcare real estate investment trust (“REIT”).
Subject to the fulfillment of certain customary closing conditions, this offering is likely to happen on or around Jul 5, 2016. The company aims at using the proceeds for general corporate purposes which matches its primary focus of building outpatient facilities through acquisition and development. Also, the company intends to use the proceeds for lowering its indebtedness under unsecured credit facility and for mortgage debt repayment.
Healthcare Realty Trust primarily focuses on outpatient related facilities that are strategically located in or near the campuses of large acute care hospitals and is associated with leading health systems. In fact, around 84% of total medical office buildings (“MOBs”) are located on or adjacent to hospital campuses, benefitting both physicians and patients. In addition, MOBs also have shorter lease terms, which allow rollover rent increases that enhance internal revenue growth.
Healthcare Realty Trust presently has a Zacks Rank #3 (Hold).
However, investors interested in the REIT sector can consider stocks like Apple Hospitality REIT, Inc. APLE, Sotherly Hotels Inc. SOHO and W. P. Carey Inc. WPC, each sporting a Zacks Rank #1 (Strong Buy).
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