Health Care REIT, Inc. (NYSE: HCN) has completed its largest ever overnight stock offering, raising gross proceeds of about $1.5 billion that will be used in part to invest in seniors housing properties, the company announced today.
The public offering of nearly 19.6 million shares came on the heels of HCN’s recently announced $2.2 billion investment pipeline for the first quarter of 2015. Net proceeds from the stock offering will go toward this pipeline.
Seniors housing operating investments will account for about $1.1 billion of the first quarter pipeline, while triple-net investments and loan investments will account for the remaining dollars.
The majority of HCN’s post-acute investments will involve its established partners, most prominently Genesis Healthcare (NYSE: GEN), Chief Investment Officer Scott Brinker said during a call with analysts last month. The REIT posted record earnings in 2014, with 7.3% growth in its senior housing operating portfolio.
The pipeline activity represents a notable shift from 2014, when the real estate investment trust (REIT) completed a total of $3.7 billion of new investments during the entire year.
In addition to seniors housing and other health care property investments, HCN intends to use net proceeds from its stock offering to repay advances under its primary unsecured credit facility.
The public offering of 19.55 million shares at a price of $75.50 per share totaled gross proceeds of approximately $1.5 billion, which includes 2.55 million shares sold pursuant to the underwriters’ exercise in full of their purchase option for additional shares.
Written by Tim Mullaney