Healthcare Realty Trust Incorporated (NYSE:HR) has reported significant growth in its joint venture (JV) with KKR, with the value of the JV approaching $500 million following the contribution of $118 million worth of additional properties. This move has generated approximately $94 million in proceeds.
Furthermore, the company has additional asset sales and JV transactions under contract or letter of intent (LOI) that are expected to increase proceeds to over $1 billion. Most of these transactions are anticipated to be completed in the third quarter, with the proceeds expected to fund accretive, leverage-neutral share repurchases and existing capital commitments.
Todd Meredith, President and CEO of Healthcare Realty Trust, emphasized the progress made towards the goal of generating more than $1 billion in proceeds from asset sales and JV transactions. He highlighted that the expansion of the JV with KKR is indicative of the company's efforts to secure proceeds in the current market environment and alternative sources of growth capital over the longer term.
Healthcare Realty Trust is a real estate investment trust (REIT) that specializes in owning and operating medical outpatient buildings primarily located around market-leading hospital campuses. The company's portfolio comprises nearly 675 properties totaling approximately 40 million square feet concentrated in 15 growth markets.
The company's selective growth strategy through property acquisition and development has contributed to its expansion. The contribution of additional properties to its JV with KKR, as well as the anticipated increase in proceeds from planned transactions, underscores the company's commitment to capitalizing on market opportunities and driving growth.
The market has reacted to these announcements by moving the company's shares 0.2% to a price of $17.81. Check out the company's full 8-K submission here.
