Possible Merger Between 2 REITS

Two real estate investment trusts, Scottsdale, Ariz.-based Healthcare Trust of America and Nashville, Tenn.-based Healthcare Realty Trust, are looking to merge, creating a company that could be worth in excess of $10 billion, according to one published report.

Healthcare Trust of America (HTA  - NYSE), which owns medical buildings around the United States, reported $739 million in revenue and net income of $53.5 million for fiscal year 2020, up from $692 million in revenue and $31 million in the previous year.

But in 2018 the company reported $218 million in net income from $696 million in annual revenue.

For fiscal year 2021, Healthcare Realty Trust (HR – NYSE), reported $535 million in annual revenue and $67 million in net income, up from the previous year results, when it reported $499 million in revenue. Net income, however, was at $72 million.

Healthcare Trust of America’s market capitalization is $6.5 billion while Healthcare Realty Trust’s market capitalization is $4.55 billion.

In October, MarketWatch reported that Elliott Investment Management urged Healthcare Trust of America to explore a sale due to the company's "longterm under performance."

The potential merger, which would combine Healthcare Trust of America’s 25 million square feet with Health Trust of America’s nearly 18 million square feet, was reported in The Wall Street Journal today.

Healthcare Trust of America's stock was trading up by 66 cents to $30.35, while Healthcare Realty Trust's stock was down about $1.50 and trading at $28.79 at midday today.

Phone calls to both companies seeking comment and confirmation on the possible merger went unreturned.