Health Care REIT announces stock offering

Health Care REIT, Toledo, Ohio, said it intends to offer 8 million shares of common stock at $40.40 per share and give underwriters 30 days to purchase up to an additional 1.2 million shares. The real estate investment trust increased the offering by 3 million shares from its initial offering of 5 million on Aug. 31, saying it responded to investor demand. The offer—subject to closing conditions—is expected to close on Sept. 4.

In a news release, the company said it estimates that gross proceeds from the offering will be about $323.2 million. Before it uses the net proceeds to retire about $53.1 million of mortgages payable and invest in additional healthcare and senior housing properties, the company will use the proceeds to repay borrowings under its unsecured line of credit and other outstanding debt.

Health Care REIT invests in senior housing and healthcare real estate, and it also provides property-management and development services. As of June 30, the company said its portfolio consisted of 620 properties in 39 states.

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