Medequities Realty Trust has filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) for its initial public offering (IPO). No terms were given in the filing, but the offering is valued up to $150 million, although this number is usually just a placeholder. The company plans to file on the New York Stock Exchange under the symbol MRT.
The underwriters for the offering are FBR Capital Markets, JPMorgan, Citigroup, KeyBanc Capital Markets and RBC Capital Markets.
This is a self-managed and self-administered company that invests in a diversified mix of health care properties and health care-related real estate debt investments. What separates Medequities from the rest is that it has elected to be taxed as a real estate investment trust (REIT) for U.S. federal income tax purposes, commencing with its short taxable year ended December 31, 2014.
The company’s portfolio is comprised of 21 health care facilities, including two long-term acute care hospitals, two acute care hospitals, 15 skilled nursing facilities, one medical office building and one assisted living facility, which it acquired for an aggregate gross purchase price of $452.9 million, as well as two health care-related debt investments in the aggregate principal amount of $28.0 million.
Additionally, Medequities has two transactions under contract, consisting of one skilled nursing facility and one inpatient rehabilitation facility, and an option to purchase a skilled nursing facility for an initial aggregate purchase price of $46.0 million.
Upon the acquisition of the properties under contract, the portfolio will be comprised of 24 health care facilities with an initial aggregate gross purchase price of $498.9 million and a total of 2,308 licensed beds located in Texas, California, Nevada and South Carolina, including 17 skilled nursing facilities, two acute care hospitals, two long-term acute care hospitals, one assisted living facility, one inpatient rehabilitation facility and one medical office building, providing aggregate annualized base rent of approximately $45.9 million, and a $10.0 million health care-related debt investment that provides annual interest payments of approximately $0.9 million.
The proceeds from this offering will go toward repaying Medequities indebtedness, acquiring Vibra Rehabilitation Hospital of Amarillo, and for general corporate purposes.