Healthpeak Properties Merges with Physicians Realty Trust

Healthpeak Properties, Inc. (NYSE: PEAK) has successfully completed its merger with Physicians Realty Trust, with the combined company set to operate under the name "Healthpeak Properties, Inc." and begin trading under the ticker symbol "DOC" on the New York Stock Exchange from March 4, 2024.

Scott Brinker, President and CEO of Healthpeak, announced that the transaction is expected to enhance the company's earnings, balance sheet, and platform. The integration efforts are reportedly progressing ahead of schedule, with property management internalized in four markets so far, and an additional five markets scheduled by the end of the second quarter.

The company anticipates generating merger-related synergies of $40 million during 2024, with the potential for $20 million or more of additional synergies by the end of 2025.

In connection with the merger's completion, the Healthpeak board of directors has expanded from 8 to 13 directors, with the addition of five new directors who previously served on the board of trustees of Physicians Realty Trust.

Additionally, on March 1, 2024, Healthpeak secured a new $750 million 5-year unsecured term loan, which was utilized to repay $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. The company 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.

Barclays and Morgan Stanley & Co. LLC served as lead financial advisors, with J.P. Morgan Securities LLC, Mizuho Securities USA LLC, RBC Capital Markets, and Wells Fargo also providing financial advisory services. Latham & Watkins LLP acted as the legal advisor to Healthpeak during the merger process.

BofA Securities and KeyBanc Capital Markets Inc. acted as lead financial advisors to Physicians Realty Trust, with BMO Capital Markets Corp. serving as financial advisor, and Baker McKenzie acting as the company's legal advisor.

Healthpeak Properties, Inc. is a fully integrated real estate investment trust (REIT) and S&P 500 company, owning, operating, and developing high-quality real estate for healthcare discovery and delivery. As a result of these announcements, the company's shares have moved 1.9% on the market, and are now trading at a price of $17.07. For the full picture, make sure to review Healthpeak Properties's 8-K report.

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