Health care properties owner MedEquities Realty Trust files for IPO valued at up to $150M

MedEquities, a real estate investment trust that owns health care properties, on Thursday filed for an initial public offering valued at up to $150 million.

MedEquities Realty Trust Inc. said it owns 21 health care facilities, most of them skilled nursing facilities, and has deals for three other properties under contract. The properties are in states including Texas, California and Nevada. The Nashville, Tennessee-based company also owns two debt investments connected to health care real estate.

The company was formed in 2014 and said it earned $1.9 million over the first half of 2015 on $15.9 million in revenue.

MedEquities plans to use proceeds from the IPO to redeem preferred stock, fund an acquisition, pay down debt and for general corporate purposes.

A real estate investment trust, or REIT, owns real estate that produces income. REITs must distribute at least 90 percent of their taxable income to shareholders annually. Investors buy shares of REITs for the dividend income and to invest in real estate without being landlords.

MedEquities plans to list its shares on the New York Stock Exchange under the symbol "MRT."