Healthpeak Properties, Inc. and Physicians Realty Trust revealed plans for an all-stock merger of equals, valued at an impressive $21 billion. This landmark merger will see each Physicians Realty Trust common share converted into 0.674 of a newly issued Healthpeak common share, underlining the deal’s monumental scale in the healthcare real estate industry.

Creating a Leading Healthcare Real Estate Platform

This fusion is poised to create a dominant real estate platform dedicated to healthcare discovery and delivery. The merged entity will boast a combined portfolio of 52 million square feet, highlighting a significant presence in outpatient medical properties across key high-growth markets, including Dallas, Houston, Nashville, Phoenix, and Denver.

Strategic Benefits and Shareholder Impact

Set to be a tax-free transaction, the merger is expected to close in the first half of 2024. Healthpeak and Physicians Realty Trust shareholders will own approximately 77% and 23% of the new company, respectively. The transaction has been unanimously approved by both boards and awaits shareholder and customary closing approvals. Scott Brinker, President and CEO of Healthpeak, emphasized the merger’s potential for enhanced growth, value creation for shareholders, and a solidified competitive advantage in serving major health system tenants. The merged company aims to leverage its increased scale and deep industry relationships to foster immediate and long-term value for both shareholders and tenants.

Financial Outlook and Future Operations

The merger is predicted to yield synergies ranging from $40 million to $60 million by the end of the second year post-merger, signaling accretive impacts on run-rate AFFO per share and FFO per share for both companies’ shareholders. Once finalized, the combined entity will operate under the Healthpeak Properties, Inc. name, with its shares trading as “DOC” on the New York Stock Exchange, and will have its headquarters in Denver while maintaining other existing offices.

This major merger between Healthpeak Properties and Physicians Realty Trust marks a significant milestone in the healthcare real estate sector. The combined forces are expected to create a robust platform that could potentially redefine healthcare facility investments and real estate services, enhancing the sector’s overall dynamics.

  Healthpeak Properties, Physicians Realty Trust, Scott Brinker, USA