Activist Starboard has a stake in Healthcare Realty Trust. Two paths to create value emerge

Healthcare Realty Trust (HR) is a real estate investment trust that owns and operates medical outpatient buildings located primarily on or around hospital campuses.

The company entered into an agreement to merge with Healthcare Trust of America ( HTA ) in an approximately $18 billion deal.

The merger was somewhat dilutive to HR shareholders as the deal implied a sub-5% cap rate.

Management had the opportunity to show the wisdom in the acquisition by integrating the two businesses.

Starboard is a top operational and corporate governance activist.

If the first path a search for a new CEO is the right path for shareholders, there is nobody better to work with the board.

The firm exited this situation up 47.27% compared to a 7.2% loss for the Russell 2000 over the same period.