An American Realty Capital, LLC-sponsored non-traded real estate investment trust (REIT) with senior housing at the core of its portfolio announced its intent Wednesday to go public.
American Realty Capital Healthcare Trust II, Inc. (Healthcare Trust II) filed an application to list its common stock on a national stock exchange under the symbol “HTI,” and, subject to approval, anticipates that its common stock will begin trading on such exchange during the third quarter of 2015, the REIT said in a statement.
Earlier this year, ARC’s Healthcare Trust II closed a $2.1 billion non-listed public offering. Of about $1.9 billion in assets, about 44% of net operating income is derived from senior housing, Todd Jensen, chief investment officer, previously told SHN, noting that the REIT was on track for deploying the capital as planned by the end of the first quarter of 2015.
The company has an active history in the senior housing sector, including the recent acquisition of its American Realty Capital Healthcare Trust, Inc. (NASDAQ: HCT) by Ventas, Inc. (NYSE: VTR) for $2.6 billion — a transaction which closed Jan. 16.
“A listing in 2015 is very much as expected given the playbook witnessed on HCT,” Michael Knott, managing director at Green Street Advisors, tells SHN.
AR Capital’s third, and newest non-traded health care REIT is American Realty Capital Healthcare Trust III, Inc., with its capital raising efforts now underway. All three REITs were distributed through Realty Capital Securities.
The REIT formally engaged KeyBanc Capital Markets and RCS Capital, the investment banking and capital markets division of Realty Capital Securities, LLC, as financial advisors, according to its filing with the United States Securities and Exchange Commission.
“Listing Healthcare Trust II is an important strategic step to enhance long-term shareholder value and create liquidity,” says Thomas D’Arcy, CEO of Healthcare Trust II, in a statement. “The real estate capital markets, while somewhat volatile, still offer, in our opinion, the best relative strategic alternative to monetize value for our stakeholders, while not foreclosing other options.”
As of Dec. 31, 2014 Healthcare Trust II had 118 assets, versus Health Care REIT, Inc. (NYSE: HCN) which owns 1,328 properties spanning three countries — the United States, United Kingdom and Canada; LTC Properties, Inc. (NYSE: LTC), which has 206 properties; and Sabra Health Care REIT, which has 160 properties.
As of Dec. 31, 2014 Healthcare Trust II had an occupancy of 90.9%.
“This group is experienced and has played the health care real estate cycle well and has performed for its shareholders, as evidenced by HCT,” Knott says. “Most non-traded REITs have historically not outperformed their listed REIT peers, but HCT did.”
Written by Cassandra Dowell
[Editor’s note: This article previously stated in error that American Realty Capital’s CEO had resigned. In fact, American Realty Capital’s CEO Nicholas Schorsch remains CEO and chairman of AR Capital. SHN regrets the error.]