After losing $31 million in the first quarter of the year–compared to a net income of $75 million in the first quarter of 2007–Dallas-based Tenet Healthcare Corp. today released details of its plan to sell 34 medical office buildings across the country.
The portfolio totals 2.4 million square feet of rental space throughout properties located throughout the Southeast, as well as Texas, Florida and California. Tenet retained Jones Lang LaSalle to assist in the promotion, marketing and sale of the portfolio.
The buildings are being offered as a single portfolio or as separate, regional sub-portfolios to qualified institutional real estate investment companies. The assets will be sold subject to long-term ground leases, which will be targeted for medical use only.
The goal of the sale is to increase Tenet’s financial flexibility by freeing resources that can be invested in core operations, according to a statement from the company. The timing of the sale results from the “current attractiveness of the medical office real estate market,” according to the statement.
The medical office buildings within the Tenet portfolio include properties in Texas, Georgia, North Carolina, California, Alabama Tennessee and Florida–including Palmetto Medical Plaza of Hialeah (pictured).
On March 31, Tenet’s first quarter results included same-hospital admissions increasing by 1 percent; same-hospital commercial managed care admissions declined by 3.7 percent; same-hospital adjusted EBITDA increased by 23 percent to $239 million; same-hospital total commercial managed care revenues increased by 5.6 percent; adjusted net cash used in continuing operating activities was $107 million in this quarter compared to adjusted net cash usage of $159 million in the first quarter of 2007; capital expenditures of $189 million and cash and cash equivalents of $278 million.
Article By: CPN, Tonie Auer Southwest Correspondent