Healthcare Realty Trust provides update on KKR JV, intends to repurchase shares

Healthcare Realty Trust Incorporated (HR) announced in early May that it had entered into a strategic joint venture with KKR (KKR) to own and invest in quality medical outpatient buildings. To date, the company has contributed 10 properties to the KKR JV that have generated $227M of proceeds. The company expects to contribute additional properties to the KKR JV that will bring total proceeds in excess of $300M. Beyond the initial property contributions, KKR has committed up to an additional $600M of capital to increase the potential value of the JV to $1B. Healthcare Realty will retain a 20% interest and manage the JV, as well as continue to oversee day-to-day operations and leasing of the properties. Separate from the KKR JV, the company has additional transactions under contract and letters of intent that are expected to generate further proceeds of more than $300M by early August. Proceeds from the KKR JV as well as additional transactions are expected to be used to repurchase shares on a leverage neutral basis. The company has repurchased shares totaling over $175M since April 1.