AH Realty Trust sells 11 properties for $562M

By Chris Stiles • Monday, March 16 11:46 • Permanent Link

AH Realty Trust (NYSE: AHRT) has announced a significant agreement to sell 11 multifamily properties to Harbor Group International for $562 million in cash, marking a major step in the company's strategic transformation and balance sheet strategy. This sale is part of AH Realty Trust's plan to simplify its platform, reduce leverage, and reallocate capital toward its operating strategy.

The sale proceeds will be used for debt reduction, aligning with the company's long-term leverage target of 5.5x–6.5x net debt to total adjusted EBITDA. This move is aimed at strengthening the company's balance sheet, reducing complexity, and concentrating resources on the retail and office sectors to create more value.

The 11 multifamily assets under the agreement represent the entirety of the company’s multifamily portfolio, except for Smith’s Landing, which AH Realty Trust will retain, and the Everly and Solis Gainesville, both of which the company intends to market for sale.

Additionally, the company is in advanced negotiations to sell two of its real estate financing investments for aggregate proceeds of approximately $63 million. These transactions, if completed, will further contribute to the company's balance sheet strategy.

As a result of these announcements, the company's shares have moved 0.14% on the market, and are now trading at a price of $7.06. For more information, read the company's full 8-K submission here.

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