The latest in a series of power plays from Health Care REIT (NYSE: HCN), the company announced today it has completed its common stock offering valued at $1.1 billion—its second such offering valued over a billion dollars in the past several months.
The net proceeds of the offering, which included 17,825,000 shares at a price of $63.75 per share, will be used to repay advances under Health Care REIT’s primary unsecured credit facility and for general corporate purposes, including investing in health care and senior housing properties, the company stated.
Along with its May common stock offering—an offer valued at approximately $1 billion—Health Care REIT has completed the two largest individual overnight marketed common stock offerings by any NYSE listed company thus far in 2014 based on total gross proceeds.
The May offering featured 16,100,000 shares at a price of $62.35 per share, which includes 2,100,000 shares sold pursuant to the underwriter’s exercise in full of their purchase option for additional shares. Like Wednesday’s offering, net proceeds will also be used toward the expansion of the company’s health care and senior housing portfolios.
The Toledo, Ohio-based real estate investment trust provided a glimmer of insight into its future acquisition plans last week, when it announced that it plans to acquire approximately $1.7 billion worth of properties in the remainder of this year.
On the heels of several blockbuster deals in the senior living sector this year, including the $950 million acquisition of HealthLease Properties REIT and the $257 million Gracewell Healthcare acquisition with Sunrise Senior Living, Health Care REIT plans to ramp up transactions in the coming months with an estimated $468 million planned for senior housing triple-net lease properties as well as $371 million worth of senior housing operating properties.
Recently, Health Care REIT has signaled a notable shift in its investment strategy toward the post-acute care space through its latest partnership with Carmel, Indiana-based developer Mainstreet. Last month, the company entered into an agreement to acquire 17 of the developer’s properties currently under construction for $369 million and another 45 properties in Mainstreet’s future pipeline.
Additionally, the REIT said it expects to target $597 million acquisitions in the post-acute and long-term care space as 2014 unfolds.
Goldman, Sachs & Co., RBC Capital Markets, Bank of America Merrill Lunch, Citigroup, Deutsche Bank Securities, J.P. Morgan and Morgan Stanley acted as joint book-running managers for Wednesday’s offering.
The completed common stock offering also includes 2,325,000 shares sold pursuant to the underwriters’ exercise in full of their purchase option for additional shares.
Written by Jason Oliva