Key Takeaways:
American Healthcare REIT Inc. (NYSE: AHR) on Tuesday announced the pricing of a 14-million-share public stock offering expected to generate gross proceeds of approximately $705.6 million before expenses.
The real estate investment trust entered into a forward sale agreement with BofA Securities, which is acting as the sole underwriter for the offering, according to a company statement. The offering is expected to close on May 22, subject to customary closing conditions.
Under the agreement, the forward purchaser is expected to borrow and sell 14 million shares to the underwriter. BofA Securities also has a 30-day option to purchase up to an additional 2.1 million shares. The company will not receive any immediate proceeds from the sale but expects to physically settle the forward sale agreement within approximately 24 months, at which point it will receive cash proceeds for the shares.
The offering comes as AHR's stock trades near its 52-week high. The shares have returned 54.85 percent over the past year. Net proceeds from the settlement are expected to be used for general corporate purposes, which may include future investments. American Healthcare REIT owns and operates a diversified portfolio of clinical healthcare real estate, including senior housing, skilled nursing facilities, and outpatient medical buildings in the United States, the United Kingdom, and the Isle of Man.
This share offering will increase the number of outstanding shares, potentially diluting existing shareholders in the short term. However, the capital infusion provides the REIT with significant resources for future acquisitions and investments. Investors will be watching for the execution of the forward sale agreement and the deployment of capital over the next 24 months.
This article is for informational purposes only and does not constitute investment advice.
