Welltower is basically ending its working relationship with skilled nursing operator Genesis HealthCare, the actual property funding belief introduced Tuesday evening.
Welltower plans to terminate leases with Genesis for 51 properties and transition operations to main regional certified nursing operators, together with ProMedica. The REIT pays Genesis a lease termination payment of $ 86 million upon profitable transition of all properties. Actual property transactions whole $ 880 million, or about $ 144,000 per mattress, in line with Welltower.
“The standard of the corporate’s portfolio and long-term progress prospects will probably be considerably improved following the transition of property to regional operators and thru the longer term roll-out of the merchandise acquired via these transactions,” mentioned Shankh Mitra, CEO of Welltower, in a press release.
The corporate expects to generate proceeds of $ 745 million and dilution of annualized earnings of 5 cents per share after reinvesting the proceeds at an assumed return of 6%.
The REIT additionally introduced on Tuesday two transactions involving the corporate’s three way partnership with ProMedica, together with the sale of a portfolio of 25 buildings of “non-core” certified nursing care buildings for $ 265 million. The amenities had been acquired two and a half years in the past when the Welltower / ProMedica partnership was fashioned in 2018. The amenities are positioned in eight states and are on common 41 years previous.
Second, 9 PowerBack remediation amenities, operated by Genesis, will probably be contributed to Welltower’s three way partnership with ProMedica and will probably be leased to ProMedica. The properties are largely state-of-the-art, purpose-built rehabilitation amenities, and reimbursements are primarily acquired from Medicare and business insurance coverage suppliers, Welltower mentioned.
The PowerBack amenities are supposed to boost ProMedica’s post-acute capabilities by enabling the healthcare system to additional strengthen its capability to work with referral sources and supply crucial care to sufferers and their households in these markets, in line with ProMedica. They are going to be rebranded as ProMedica Senior Care, a model launched by the corporate in October.
“ProMedica has the distinctive alternative to boost its senior care portfolio with these two essential transactions,” mentioned Randy Oostra, President and CEO of ProMedica. “The transactions are a testomony to the robust partnership we’ve got fashioned with Welltower and our frequent deal with innovation and high quality affected person care. As well as, the transactions introduced right now with Welltower comply with different just lately introduced partnerships that collectively enable ProMedica to strengthen its place in strategic markets. Most significantly, we can develop the prime quality care that our communities count on from us.
This text appeared within the McKnight’s Enterprise Each day, a joint effort of McKnight’s Senior Residing and McKnight Lengthy Time period Care Information.