Healthcare REITs in ‘Atypical’ Merger Deal Trade at Sharp Discounts to NAV

Healthpeak Properties Inc. and Physicians Realty Trust traded at steep discounts to net asset value at the time they announced their planned all-stock merger. The all-stock merger of equals would lead to a combined company with an expected enterprise value of about $21 billion. It was valued at $4.69 billion at announcement, according to Market Intelligence data. The transaction, which drew initial skepticism from investors, is not a sale but “just a combination based on relative value that made sense in and of itself,” Healthpeak President and CEO Scott Brinker said on an M&A call. Wedbush Securities analyst Richard Anderson called the deal “a unique marriage that doesn’t follow the conventional playbook of REIT M&A.”

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Source: https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/healthcare-reits-in-atypical-merger-deal-trade-at-sharp-discounts-to-nav-78229074

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