Healthpeak Properties, Inc. (NYSE: PEAK) (“Healthpeak”) today
announced that it has closed on the previously announced merger
with Physicians Realty Trust. The combined company will operate
under the name “Healthpeak Properties, Inc.” and is expected to
begin trading under the ticker symbol “DOC” at the open of trading
on The New York Stock Exchange on March 4, 2024.
“We are pleased to announce the completion of our merger with
Physicians Realty Trust,” said Scott Brinker, President and Chief
Executive Officer of Healthpeak. “We believe this transaction
augments our earnings, balance sheet, and platform. Our integration
efforts are progressing ahead of schedule with property management
internalized in four markets to date, with an additional five
markets scheduled by the end of the second quarter. We expect to
generate merger-related synergies of $40 million during 2024 with
potential for $20 million or more of additional synergies by
year-end 2025.”
In connection with the completion of the merger, the Healthpeak
Board of Directors expanded from 8 to 13 directors with the
addition of five new directors that previously served on the board
of trustees of Physicians Realty Trust: John Thomas, who will serve
as Vice Chair of the Healthpeak Board, as well as Ava Lias-Booker,
Pamela Kessler, Governor Tommy Thompson, and Richard Weiss.
Additionally, on March 1, 2024, Healthpeak entered into a new
$750 million 5-year unsecured term loan. Proceeds from the term
loan were used toward the repayment of $210 million of Physicians
Realty Trust private placement notes and will be used for general
corporate purposes, including transaction costs and repayment of
borrowings under Healthpeak's commercial paper program. Healthpeak
has entered into swap agreements to fix the interest rate of the
new term loan at approximately 4.5% for the full 5-year term of the
loan.
ADVISORS
Barclays and Morgan Stanley & Co. LLC served as lead
financial advisors, J.P. Morgan Securities LLC, Mizuho Securities
USA LLC, RBC Capital Markets, and Wells Fargo served as additional
financial advisors, and Latham & Watkins LLP acted as legal
advisor to Healthpeak.
BofA Securities and KeyBanc Capital Markets Inc. acted as lead
financial advisors, BMO Capital Markets Corp. served as financial
advisor, and Baker McKenzie acted as legal advisor to Physicians
Realty Trust.
ABOUT HEALTHPEAK PROPERTIES
Healthpeak Properties, Inc. is a fully integrated real estate
investment trust (REIT) and S&P 500 company. Healthpeak owns,
operates, and develops high-quality real estate for healthcare
discovery and delivery. For more information regarding Healthpeak,
visit www.healthpeak.com.
FORWARD-LOOKING STATEMENTS
This communication may include “forward-looking statements,”
including but not limited to those regarding the transactions
between Healthpeak and Physicians Realty Trust, within the meaning
of the Private Securities Litigation Reform Act. All statements
other than statements of historical fact are “forward-looking
statements” for purposes of federal and state securities laws.
These forward-looking statements, which are based on current
expectations, estimates and projections about the industry and
markets in which Healthpeak operates and beliefs of and assumptions
made by Healthpeak management, involve uncertainties that could
significantly affect the financial or operating results of
Healthpeak, Physicians Realty Trust or the combined company. Words
such as “expects,” “anticipates,” “intends,” “plans,” “believes,”
“seeks,” “estimates,” “predicts,” “projects,” “forecasts,” “will,”
“may,” “potential,” “can,” “could,” “should,” “pro forma,” and
variations of such words and similar expressions are intended to
identify such forward-looking statements. Such forward-looking
statements include, but are not limited to, statements about the
anticipated benefits of the transactions involving Healthpeak and
Physicians Realty Trust, including future acquisitions,
dispositions, financing activity, financial and operating results,
plans, objectives, expectations and intentions. All statements that
address operating performance, events or developments that
Healthpeak expects or anticipates will occur in the future —
including statements relating to creating value for stockholders,
benefits of the transactions to clients, tenants, employees,
stockholders, and other constituents of the combined company,
integrating the companies, and cost savings — are also
forward-looking statements. These statements are not guarantees of
future performance and involve certain risks, uncertainties and
assumptions that are difficult to predict. Although Healthpeak
believes the expectations reflected in any forward-looking
statements are based on reasonable assumptions, Healthpeak can give
no assurance that its expectations will be attained and, therefore,
actual outcomes and results may differ materially from what is
expressed or forecasted in such forward-looking statements. For
example, these forward-looking statements could be affected by
factors including, without limitation, risks associated with the
impact of indebtedness incurred in connection with the
transactions; the ability to successfully integrate portfolios and
business operations, including properties, tenants, property
managers and employees; the ability to realize anticipated benefits
and synergies of the transactions as rapidly or to the extent
anticipated by financial analysts or investors; potential liability
for a failure to meet regulatory or tax-related requirements,
including the maintenance of REIT status; material changes in the
dividend rates on securities or the ability to pay dividends on
common shares or other securities; potential changes to tax
legislation; changes in demand for developed properties; adverse
changes in the financial condition of joint venture partner(s) or
major tenants; risks associated with the acquisition, development,
expansion, leasing and management of properties; risks associated
with the geographic concentration of Healthpeak; risks associated
with the industry concentration of tenants; the potential impact of
announcement of the transactions on business relationships,
including with clients, tenants, property managers, customers,
employees and competitors; risks related to diverting the attention
of Healthpeak’s management from ongoing business operations;
unfavorable outcomes of any legal proceedings that have been or may
be instituted against Healthpeak or Physicians Realty Trust; costs
related to uninsured losses, condemnation, or environmental issues,
including risks of natural disasters; the ability to retain key
personnel; costs, fees, expenses and charges related to the
transactions; changes in local, national and international
financial markets, insurance rates and interest rates; general
adverse economic and local real estate conditions; risks related to
the market value of shares of Healthpeak common stock issued in the
transaction; the inability of major tenants to continue paying
their rent obligations due to bankruptcy, insolvency or a general
downturn in their business; foreign currency exchange rates;
increases in operating costs and real estate taxes; changes in
dividend policy or ability to pay dividends for Healthpeak common
stock; impairment charges; unanticipated changes in Healthpeak’s
intention or ability to prepay certain debt prior to maturity
and/or hold certain securities until maturity; pandemics or other
health crises, such as coronavirus (COVID-19); and those additional
risks and factors discussed in reports filed with the SEC by
Healthpeak and Physicians Realty Trust. Moreover, other risks and
uncertainties of which Healthpeak is not currently aware may also
affect the companies’ forward-looking statements and may cause
actual results and the timing of events to differ materially from
those anticipated. The forward-looking statements made in this
communication are made only as of the date hereof or as of the
dates indicated in the forward-looking statements, even if they are
subsequently made available by Healthpeak on its website or
otherwise. Healthpeak does not undertake any obligation to update
or supplement any forward-looking statements to reflect actual
results, new information, future events, changes in its
expectations or other circumstances that exist after the date as of
which the forward-looking statements were made.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240229062129/en/
Andrew Johns, CFA Senior Vice President – Investor Relations
720-428-5400
Healthpeak Properties (NYSE:PEAK)
Historical Stock Chart
From Apr 2024 to May 2024
Healthpeak Properties (NYSE:PEAK)
Historical Stock Chart
From May 2023 to May 2024