: Healthpeak Properties and Physicians Realty to combine in $21 all-stock merger of equals

Healthpeak Properties Inc. PEAK and Physicians Realty Trust DOC said Monday they are combining in an all-stock merger of equals valued at about $21 billion. Under the terms of the deal, each of Milwaukee-based Physicians Realty’s shares will be converted into 0.674 of a newly issued share by Denver-based Healthpeak. The deal will create a real estate platform “dedicated to healthcare discovery and delivery with a 52 million square foot portfolio, including 40 million square feet of outpatient medical properties concentrated in high-growth markets such as Dallas, Houston, Nashville, Phoenix, and Denver,” the companies said in a joint statement. Scott Briner, who is CEO of Healthpeak, will become CEO of the combined company, while John Thomas, head of Physicians Realty, will be vice chair of the board. The deal is expected to boost run-rate adjusted funds from operations, or AFFO. It’s expected to generate run-rate synergies of at least $40 million by the end of year one and up to $60 million by the end of year two. Once the deal closes in the first half of 2024, it will trade as Healthpeak Properties and trade as “DOC” on the New York Stock Exchange. Healthpeak’s stock was down 1.3% premarket, while Physicians Realty was up 4.4%.

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