American Healthcare REIT (NYSE: AHR) acquired the remaining 24% minority stake in Trilogy REIT Holdings for a total all-cash purchase price of approximately $258 million.
The acquisition included a base purchase price of $247 million and an $11 million pro-rata distribution owed to the former joint venture partner, an affiliate of NorthStar Healthcare Income, AHR said in a press release Tuesday.
American Healthcare funded the purchase using net proceeds from an equity offering. Additionally, the Company utilized part of these proceeds to repay around $194 million in outstanding debt on its lines of credit, strengthening its financial position.
This acquisition not only consolidates American Healthcare’s ownership but also enhances its operational capabilities in the senior health sector.
AHR is now the sole owner of Trilogy Holdings and its Integrated Senior Health Campuses.
“We are excited to have completed the acquisition of our joint venture partner’s 24% minority membership interest in Trilogy Holdings in an accretive and leverage neutral manner,” said Danny Prosky, AHR’s president and CEO. “We paid down existing outstanding indebtedness on our lines of credit with the remaining net proceeds from our recent common stock offering, which we believe will result in further accretion and borrowing capacity.”
Trilogy Management Services will continue on as an operating partner.
“We look forward to the potential future growth opportunities we will be able to access with the completion of this transaction,” Prosky said.
California-based American Healthcare REIT is a self-managed real estate investment trust that acquires, owns and operates a diversified portfolio of clinical healthcare real estate properties, focusing primarily on outpatient medical buildings, senior housing, skilled nursing facilities and other healthcare-related facilities. Its properties are located in the United States, the United Kingdom and the Isle of Man.
