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Healthcare REIT (NYSE: Human Resources) said Monday that the medical office building REIT expects to retain about $3 million in unpaid pre-bankruptcy rent related to tenant Steward Health in the second quarter.
Unpaid rent includes part of March, all of April and The first five days of May. After Steward filed for bankruptcy on May 6, it expects to pay May’s back rent as part of the outcome of the bankruptcy proceedings.
Steward Health has paid most of the rent it owes in June and July, the company said.
The news comes after Medical Properties Trust Inc., the largest tenant by total assets, received bankruptcy court approval to tap $225 million in new financing under Chapter 11.
Additionally, the healthcare REIT said it signed new leases totaling 432,000 square feet in the second quarter. Multi-tenant absorption in the second quarter was 122,000 square feet, compared with 183,000 square feet in the first half.
In addition, HR has generated approximately $400 million in proceeds year-to-date from joint ventures and asset sales transactions. Additional joint venture transactions and asset sales under contracts or letters of intent, the majority of which are expected to close in the third quarter, are currently expected to increase earnings to more than $1 billion.
Proceeds will fund accretive, leverage-neutral stock repurchases and existing capital commitments.
The company said it has repurchased 18 million shares for $286 million so far this year at an average price of $15.85 per share.
The weighted average shares outstanding in the second quarter are expected to be approximately 376.7 million shares, a decrease of 6.7 million shares from the first quarter.
Source: press release
