Healthcare Realty Trust shareholder Land & Buildings announced in a June 16 investor presentation press release shared with Becker's that it intends to vote against Healthcare Realty Trust's acquisition of Healthcare Trust of America, citing that it fails to maximize value for all Healthcare Realty Trust shareholders.
The presentation can be viewed here.
Land & Buildings' rationale for voting against the deal includes:
- Lack of strategic rationale for Healthcare Realty shareholders: Healthcare Realty's valuation will likely be negatively impacted by Healthcare Trust's historical trading valuations.
- Flawed process and evaluation of Welltower proposal: Welltower's offer for Healthcare Realty is 28 percent higher than the current share price and is in line with the fairness opinions in Healthcare Realty's proxy for its merger with Healthcare Trust – yet Healthcare Realty management refused to engage on a potential deal.
- A history of underperformance: Healthcare Realty's management has underperformed for the last five years and there's evidence things would change after a merger.
- Investor disapproval: Healthcare Realty shareholders don't approve, evidenced by the 11 percent share price drop following the merger announcement.
Land & Buildings has driven strong returns and protected client capital in a liquid real estate strategy for 13 years, providing clients diversification and an inflation hedge.