ARC Healthcare Trust II to List on Stock Exchange, Change Name

American Realty Capital Healthcare Trust II Inc. is the latest AR Capital-sponsored REIT to seek a liquidity event by trading its common stock on a national stock exchange.
Thomas D'Arcy, ARC Healthcare

Thomas D’Arcy, ARC Healthcare

American Realty Capital Healthcare Trust II, Inc., is the latest AR Capital-sponsored REIT to seek a liquidity event by trading its common stock on a national stock exchange.

A spokesperson for the ARC Healthcare Trust II said the New York-based REIT intended to file an application to trade under the symbol HTI but did not publicly disclose at which exchange it planned to list. Subject to approval, the common stock would begin trading during the third quarter.

Once the listing occurs, the company would change its name to Healthcare Trust, Inc.

The announcement comes one week after American Realty Capital Global Trust, Inc. said it planned to list its common stock on the New York Stock Exchange under the symbol GNL, possibly as soon as the second quarter. The firm would also change its name, calling itself Global Net Lease, Inc.

A news release from Healthcare Trust II, a publicly registered, non-traded REIT, said its Board of Directors had determined – in consultation with its financial advisors KeyBanc Capital Markets and RCS Capital – that moving forward with a listing application was in the firm’s best interests.

“Listing Healthcare Trust II is an important strategic step to enhance long-term shareholder value and create liquidity,” CEO Thomas D’Arcy said in the release. “The real estate capital markets, while somewhat volatile, still offer, in our opinion, the best strategic alternative to monetize value for our stakeholders, while not foreclosing other options.”

As of Dec. 31, the REIT had 118 assets and about 6.3 million square feet. Occupancy was approximately 91 percent and the average remaining lease term was 10 ½ years.

In January, the healthcare REIT said it had completed a $2.1 billion non-listed public offering on Nov. 17 and invested approximately $1.84 billion in properties, including some under contract, by the end of 2014. It said the assets included medical office buildings, seniors housing and other health-care related facilities. The company said it expected to spend the remainder of the proceeds by the end of March.

Meanwhile, its former sister company, American Realty Capital Healthcare Trust, Inc. completed its merger with Ventas, Inc. the largest healthcare REIT in the United States, in mid-January. Ventas acquired ARC Healthcare Trust for $3.2 billion in a stock and cash deal. When the transaction was announced in June, it was expected Ventas would pay $2.6 billion in stock and cash. At that time, the ARC Healthcare Trust stock was valued at $11.3 for shareholders who wanted to cash out. By the time of the closing, it had risen to $13.12 per ARC Healthcare Trust stock. The June announcement came two months after ARC Healthcare Trust stock began trading on the NASDAQ under the symbol HCT.

Ventas chairman & CEO Debra Cafaro said the deal added more than 4 million square and 152 properties to her company’s holdings as well as more than 20 new health systems to its client base and 10 new senior living operators.

Both AR Capital- sponsored REITs were part of the real estate empire built by Nicholas Schorsch, the embattled former chairman & CEO of American Realty Capital Properties and head of numerous non-traded REITs, business development corporations and other partnerships. Schorsch, who remains as chairman of the AR Capital investment firm, had resigned in December from ARCP and the boards of 13 companies. His departures came after an accounting scandal was disclosed in October at ARCP. Two weeks ago, ARCP released six quarters of restated financials and is moving on under new management in Phoenix.