Healthcare: Richmond Honan Medical Files For IPO Of Up To $257.6 Million
Richmond Honan Medical Properties Inc. announced plans to sell as much as an estimated $257.6 million of shares in an initial public offering as the medical office real-estate company looks to qualify as a real-estate investment trust this year.
Richmond Honan acquires, owns, manages and develops medical-office buildings. The company will hold equity interests in 29 medical-office buildings in 10 states when the offering closes. Its initial properties have 1.5 million of leasable square feet and had an occupancy rate of approximately 89% as of March 31.
The company plans to apply for listing on the New York Stock Exchange under the symbol MOB.
Owners and operators of health-care facilities have been less hurt by the woes in the real-estate sector, as their operations are generally less cyclical. But there have been recent signs that insured Americans are using fewer medical services, raising questions about whether patients are consuming less health care as they pick up a greater share of the costs.
Richmond Honan swung to a first-quarter loss as overhead costs soared 76% and revenue edged down 0.2%. When considered as if its Affiliated and Ziegler portfolios were held from January 2009, the loss was even wider, though revenue more than quadrupled.
Richmond Honan also plans to use proceeds to purchase the real-estate operations of those portfolios, to repay debt and for other purposes.
