Back to top

Image: Bigstock

Welltower Divests 28 Facilities to Cindat/Union Life JV

Read MoreHide Full Article

Welltower Inc. , the Toledo, OH-based healthcare real estate investment trust (“REIT”) has made the announcement of closing the sale of 28 long-term/post-acute care facilities to a joint venture between Welltower, Cindat Capital Management and Union Life Insurance Co. Ltd. It is to be noted that these facilities were master leased to Genesis Healthcare, Inc. (GEN - Free Report) , one of the largest post-acute care providers in the country.
 
Once the sale is complete, Welltower will own 25% in the joint venture, while 75% interest will be owned by Cindat and Union Life. Nevertheless, per the new lease terms with the joint venture, Genesis continues to operate the 28 long-term/post-acute care facilities.
 
Also, Welltower restructured two existing real estate loans to Genesis. The loans have been divided into four separate loans. Each of these has rate of interest of 10% cash pay with 25 basis point annual escalators and are slated to mature in five years.

Shares of Welltower underperformed the Zacks categorized REIT and Equity Trust - Other industry, year to date. During the same time span, shares of the company lost 3.3%, whereas the industry gained 2.8%. Over the past 30 days, its current-year estimates declined 0.2% to $4.54 per share.


Welltower currently carries a Zacks Rank #4 (Sell). Genesis Healthcare has a Zacks Rank # 2 (Buy).

A couple of better-ranked stocks in the real estate space include Seritage Growth Properties (SRG - Free Report) and DCT Industrial Trust Inc. . Both these stocks carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Seritage Growths’ current-year estimates have moved up 0.9% to $2.34 per share, over the past 60 days.

DCT Industrial Trust’s current-year estimates have moved up 2.3%, over the past 60 days to $2.24 per share.

Zacks’ Best Private Investment Ideas

In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?

Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Gen Digital Inc. (GEN) - free report >>

Seritage Growth Properties (SRG) - free report >>

Published in