Fresh off its initial public offering, executives at American Healthcare REIT said Monday that they are considering acquiring the remaining 26% of Trilogy Health Services that they don't currently own.
“Trilogy is our largest and best operator,” Chief Financial Officer Brian Peay said in a webcast to investors. Trilogy currently operates more than 130 senior living communities and skilled nursing facilities in five states: Ohio, Kentucky, Indiana, Michigan and Wisconsin.
“We also have the ability to selectively and proactively develop within the Trilogy portfolio, which could include villas, wing additions and even ground-up campus development,” Peay said. Stated.
After revealing plans to launch an IPO late last month, American Healthcare REIT announced Friday that it has completed an IPO of 64.4 million shares of common stock at a public offering price of $12 per share. The Irvine, California-based real estate investment trust's stock currently trades on the New York Stock Exchange under the symbol AHR.
Pee said the offering will also help the REIT expand with regional operators currently included in its senior housing portfolio.
“We want to be able to take advantage of potential market disruptions caused by property owners being unable to refinance maturing debt or buildings requiring capital investment to become more competitive within the market,” he said. “I think so,” he said.
As an example, the REIT recently assumed ownership of a portfolio of seven assisted living communities in Texas, Peay said.
“We were a mezzanine lender to the portfolio. We stood in the shoes of the borrower on the mezzanine loan amount,” the CFO said. “We hope we can continue to pursue these types of opportunities at the right price, keeping our balance sheet in mind.”
Danny Prosky, president and CEO of American Healthcare REIT, said Monday that the company's publicly traded common stock will begin trading on the New York Stock Exchange at $12.85 per share on its first day of trading. It said it closed at $13.22. This is a great start to our journey as a publicly traded company. ”
The IPO initially raised $772.8 million. The REIT intends to use the net proceeds to repay approximately $717.6 million of outstanding amounts under the credit facility and to invest in future growth.
Setting the stock price was a long process, Prosky said.
“This was not done on a whim last week,” he said, adding that the REIT has been working with banks and investors over the past several years.
“The board, on the advice of our advisors, including lead managers from Bank of America and Morgan Stanley, determined that a price range of $12 to $15 is an appropriate price range to generate interest,” Prosky said. I did,” he said.
The REIT acquires, owns and operates healthcare real estate properties, including senior living communities and skilled nursing facilities, as well as medical office buildings, hospitals and other healthcare-related facilities. As of September 30, the portfolio included assets totaling approximately $4.6 billion, consisting of 298 buildings and integrated senior health campuses in 36 states, the United Kingdom and the Isle of Man.
