Based on acquisitions that have either already closed in the third quarter or are in some form of contractual agreement, Health Care REIT (NYSE: HCN) announced today that it anticipates to acquire approximately $1.7 billion worth of properties in the remainder of this year.
The acquisitions to come—those which may have not already closed—include ones where Health Care REIT has signed a letter of intent or other customary preliminary documentation.
The aggregate anticipated acquisition amount includes the previously announced $950 million HealthLease Properties REIT acquisition; the $257 million Gracewell Healthcare acquisition with Sunrise Senior Living; along with $535 million of expected future acquisitions, the company stated.
In terms of property types the company plans to target, Health Care REIT expects the aggregate acquisitions to include approximately $597 million of post-acute and long-term care properties; $468 million of senior housing triple-net lease properties; $371 million of senior housing operating properties and $306 million of medical office buildings.
Demonstrating the success of its relationship investing approach, Health Care REIT says approximately 71% of these acquisitions, excluding HealthLease, are expected to involve existing portfolio partners the company maintains, including those with Sunrise, Genesis HealthCare, Senior Resource Group and Avery Healthcare.
The aggregate anticipated acquisition amount includes approximately $236 million of secured debt that the company expects to assume at an average annual interest rate of 4.5%.
Simultaneously following the announcement of its anticipated acquisition pipeline, Health Care REIT also disclosed today that it intends to offer 15.5 million shares of its common stock, for which the company plans to grant the underwriters a 30-day option to purchase up to an additional 2,325,000 shares of its common stock.
The company plans to use the net proceeds from this offering to repay advances under its primary unsecured credit facility and for general corporate purposes, including investing in health care and senior housing properties.
Goldman, Sachs & Co. and RBC Capital Markets are acting as joint book-running managers for the offering.
Written by Jason Oliva