Health Care REIT, Inc. HCN, the Toledo, OH-based healthcare real estate investment trust (“REIT”), has announced a public offering of nearly 19.6 million shares at a price of $75.50 per share. Valued at around $1.5 billion, this public offering marks the largest common stock offering in Health Care REIT’s 45-year history.

The company plans to utilize the proceeds for repaying advances under its primary unsecured credit facility as well as for general corporate purposes, which includes investing in health care and seniors housing properties.

Health Care REIT invests in a broad range of health care real estate properties such as senior housing communities, skilled nursing/post-acute facilities, medical office buildings, inpatient and outpatient medical centers as well as life-science facilities. In first-quarter 2015, Health Care REIT expects to close around $2.2 billion of investments.

Of this, $1.1 billion pertains to senior housing, $664 million to triple-net category and $460 million to loan investment, the bulk of which resides with Genesis Healthcare. The latest public offering is expected to provide the company an added financial flexibility for funding these transactions.

Notably, Health Care REIT reported fourth-quarter 2014 normalized funds from operations (“FFO”) of $1.03 per share, a penny ahead of the Zacks Consensus Estimate and up 4 cents year over year. The year-over-year increase in normalized FFO per share was primarily driven by growth in same-store net operating income (“NOI”) and notable portfolio investments in premium assets.

Health Care REIT currently carries a Zacks Rank #3 (Hold).

Investors interested in healthcare REITs may consider stocks like Healthcare Realty Trust Inc. HR, Medical Properties Trust Inc. MPW and Ventas, Inc. VTR. All these stocks hold a Zacks Rank #2 (Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
HEALTH CR REIT (HCN): Free Stock Analysis Report
 
VENTAS INC (VTR): Free Stock Analysis Report
 
HEALTHCARE RLTY (HR): Free Stock Analysis Report
 
MEDICAL PPTYS (MPW): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research