In order to strengthen its focus on high-barriers-to-entry
affluent markets around the world,
Health Care REIT Inc.
) stated its projected acquisition pipeline of around $414 million
of seniors housing and medical office assets for second-quarter
2014. This is based on the acquisition completions and deals inked
Specifically, this would include medical office (worth $162
million), seniors housing triple-net lease assets ($199 million),
post-acute care properties ($30 million) and Canadian seniors
housing operating properties ($23 million). Going forward, we
believe that such strategic investments in high-quality properties
will help the company enhance its portfolio quality and
consequently prove accretive to its earnings.
In a separate announcement, Health Care REIT also disclosed its
12 million common shares offering and granted underwriters an
option of 30 days to buy up to 1.8 million of additional common
shares. The company expects to use the generated proceeds from this
offering to pay off advances under its main unsecured credit
facility as well as meet investments needs in health care and
seniors housing assets.
JPMorgan Chase & Co.
The Goldman Sachs Group, Inc.
), BofA Merrill Lynch and
) will assist Health Care REIT in this equity offering as joint
book-running managers. Notably, this real estate investment trust
(REIT) exited the first quarter with cash and cash equivalents of
$185.9 million, up from $158.8 million as of Dec 31, 2013. While
this public offering will result in share dilution for Health Care
REIT, the payment of debt is encouraging as it would reduce
Health Care REIT currently carries a Zacks Rank #3 (Hold).
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