Healthpeak Properties has completed its restructuring as an umbrella partnership real estate investment trust, the company announced Friday.
The action created a holding company called New Healthpeak, which has become the publicly traded parent company through an intercompany merger. New Healthpeak has taken over the existing company name of Healthpeak Properties. The prior corporation then was converted to a limited liability company called Healthpeak OP, LLC, which is controlled by the new publicly traded parent company.
“The reorganization provides additional flexibility for the company to efficiently acquire properties in a tax-deferred manner and aligns the company’s corporate structure with other publicly traded US real estate investment trusts,” the real estate investment trust said in a statement. “The UPREIT structure allows owners to contribute property on a tax-deferred basis, subject to applicable tax requirements.”
The changes are not expected to have any material effect on the company’s financial position and are not expected to result in any material changes to the company’s consolidated financial statements, outstanding debt securities, material debt facilities or business operations, according to Healthpeak. All shares of common stock of the former Healthpeak automatically were converted into identical shares of the new holding company as part of the reorganization. Announced payments of dividends will be unchanged.
On last week’s earnings call, Chief Financial Officer Peter Scott said that the Denver-based REIT had been at a competitive disadvantage by not previously having the UPREIT structure. All in all, however, Scott said, Healthpeak Properties finished 2022 “on a strong note, delivering excellent operating results.”
