American Realty Capital Healthcare Trust Inc. said it would do it, and now it has. The REIT, sponsored by investment advisory firm American Realty Capital, announced in December 2013 that it would list on the Nasdaq, and as of today, its common stock is trading under the symbol HCT.
ARC Healthcare’s listing, as well as the simultaneous tender offer for the purchase of as much as $150 million of its shares at $11.00 per share, comes just over three years after the commencement of its $1.5 billion initial public offering. The company has since amassed a portfolio consisting of 141 Class A healthcare properties, including $1 billion of assets acquired during 2013.
ARC Healthcare’s reasons for listing are twofold: to create value and to create liquidity. More specifically, as the company explains in a presentation, current stockholders will be able to participate in future appreciation of ARC Healthcare after the listing through the company’s strong portfolio with embedded growth; proven external growth capabilities; best-in-class management; and access to a lower cost of capital that will accretively finance its acquisition pipeline. As for the creation of liquidity, stockholders will have the opportunity to convert shares into cash.
Thomas D’Arcy, CEO of ARC Healthcare, sums it up in a nutshell in a prepared statement. “ARC Healthcare is exceptionally well-positioned to drive value in the next stage of our growth with a strong, balanced and diversified portfolio of healthcare assets, an investment grade quality balance sheet, a deep and experienced management team and a focus clearly on growth,” he said.
The listing of ARC Healthcare is just one of a series of major events that have transpired under the American Realty Capital umbrella over the last few months.
In March, American Realty Capital Properties Inc. announced it would spin off the majority of its multi-tenant retail centers into a $2.2 billion publicly traded REIT. In February, ARCP completed its $11.2 billion acquisition of Cole Real Estate Investments Inc., a transaction that positioned ARCP as the largest publicly traded net lease REIT, with an enterprise value of $21.5 billion. And ARCP opened 2014 with the completion of its $3 billion merger with American Realty Capital Trust IV Inc.