Healthcare Property Firms Healthpeak Properties And Physicians Realty Trust To Merge In $21B Deal
Physicians Realty Trust
HEALTHPEAK PROPERTIES INC
Healthpeak Properties Inc (NYSE:PEAK) and Physicians Realty Trust (NYSE:DOC) have agreed to merge in an all-stock merger of equals valued at approximately $21 billion.
Under the terms of the agreement, each Physicians Realty Trust common share will be converted into 0.674 of a newly issued Healthpeak common share.
The combined company will have a 52 million square foot portfolio, including 40 million square feet of outpatient medical properties concentrated in high-growth markets such as Dallas, Houston, Nashville, Phoenix, and Denver.
The merger is expected to generate run-rate synergies of at least $40 million by the end of year one and up to $60 million by the end of year two.
The transaction is expected to be accretive to run-rate AFFO per share and FFO per share for Healthpeak and Physicians Realty Trust shareholders and augments Healthpeak's strong balance sheet with pro forma leverage in the low 5x net debt to EBITDAre range;
The combined company will be led by Scott Brinker as President and Chief Executive Officer, Peter Scott as Chief Financial Officer, and John Thomas as Vice Chair of the Board.
Upon completion of the merger, the combined company will operate with the Healthpeak Properties Inc. name and is expected to trade under the ticker symbol "DOC" on the New York Stock Exchange.
Pro forma for the transaction, Healthpeak and Physicians Realty Trust shareholders will own approximately 77% and 23% of the combined company, respectively.
Following the merger's closing, the combined company is expected to pay an annualized dividend of $1.20 per share.
Price Action: DOC stock is up 3.52% at $11.46, and PEAK shares are down 0.91% at $16.27 on the last check Monday.