Healthcare Realty Trust and global investment firm KKR have formed a joint venture to acquire outpatient medical properties.
The healthcare real estate investment trust, whose portfolio includes almost 700 properties, said it would contribute 12 of them valued at $382.5 million to the joint venture and more could be added. KKR plans to make an equity contribution valued at 80% of the value of those properties and committed another $600 million for acquisitions or other investments.
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Healthcare Realty will manage the joint venture and its day-to-day operations while retaining 20% interest, it said Tuesday as it released first-quarter earnings.
Health systems are investing heavily in ambulatory surgical centers and other types of outpatient facilities. The Centers for Medicaid and Medicare Services set higher-than-expected Medicare reimbursements for 2024 for hospital outpatient departments and ambulatory surgical centers.
The contribution of Healthcare Realty's properties, which are all medical outpatient buildings, is expected to occur by the end of June. The properties are 98% occupied.
The REIT reported a first-quarter net loss of $310.8 million, or 82 cents per share, compared to a net loss of $87.1 million, or 23 cents per share, in the year-ago period.
