Denver-based Healthpeak Properties Inc. (NYSE: PEAK) and Milwaukee-based Physicians Realty Trust (NYSE: DOC) have completed their all-stock merger of equals valued at approximately $21 billion.
The combined company will operate under the name “Healthpeak Properties Inc.” and is expected to begin trading under the ticker symbol “DOC” at the open of trading on The New York Stock Exchange on March 4. The company will focus on the healthcare real estate sector and will encompass a 52 million-square-foot portfolio, including 40 million square feet of outpatient medical properties concentrated in markets including such as Dallas, Houston, Nashville, Phoenix, and Denver.
In connection with the completion of the merger, the Healthpeak board of directors expanded from eight to 13 directors with the addition of five new directors that previously served on the board of trustees of Physicians Realty Trust: John Thomas, who will serve as vice chairman of the Healthpeak board, as well as Ava Lias-Booker, Pamela Kessler, former Wisconsin Gov. Tommy Thompson, and Richard Weiss.
“We are pleased to announce the completion of our merger with Physicians Realty Trust,” said Scott Brinker, president and CEO of Healthpeak. “We believe this transaction augments our earnings, balance sheet, and platform. Our integration efforts are progressing ahead of schedule with property management internalized in four markets to date, with an additional five markets scheduled by the end of the second quarter. We expect to generate merger-related synergies of $40 million during 2024 with potential for $20 million or more of additional synergies by year-end 2025.”
Healthpeak has entered into a new $750 million five-year unsecured term loan. Proceeds from the term loan were used toward the repayment of $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. Healthpeak has entered into swap agreements to fix the interest rate of the new term loan at approximately 4.5% for the full five-year term of the loan.
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