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Welltower to Buy Sunrise's Healthcare Communities Portfolio
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Healthcare real estate investment trust (REIT) Welltower is making pronounced efforts to strengthen its portfolio of healthcare assets. Most recently, the company announced entering into a definitive agreement for the acquisition of a portfolio of four rental continuing care retirement communities (CCRCs). These communities are located in the top markets of Washington D.C., Miami and Charlottesville Metropolitan Statistical Areas (MSAs).
The communities are currently managed by Sunrise under triple-net lease. However, Welltower will gain landlord’s ownership interest for $368 and convert the communities in a RIDEA structure.
While the company has closed the buyout for one of the communities, the remaining three are slated to be acquired in first-quarter 2018. Welltower estimates generating a nominal year-one cap rate of 7% from this investment.
Currently, the communities offer a wide range of healthcare facilities including independent living, assisted living, memory care and post-acute care services. Through complete ownership of these assets, Welltower anticipates to offer modern and technologically advanced healthcare services. Per management, this portfolio will likely improve the company’s portfolio related to its operator — Sunrise as well as offer higher returns for shareholders.
In a separate press release, Welltower, in partnership with Hines, announced the signing of a joint-venture (JV) deal with a major institutional investor for the development of Sunrise at East 56th Street — an assisted living and memory care community — in midtown Manhattan.
The project will consist of a 16-story facility spanning 130,000 square feet. While construction is underway, the project is scheduled to be completed in the first quarter of 2020.
Notably, this is also the first JV deal where an important institutional investor, a global real estate firm and a healthcare REIT have partnered for the development of an urban senior living building. In fact, steady performance of the health care real estate demonstrates the rationale behind the increasing interest of institutional investors toward asset class.
However, shares of this Zacks Rank #3 (Hold) company have underperformed its industry, in the past year. In fact, the stock has declined 4% compared with the industry’s loss of 3.4% during the same time period.
Lamar’s funds from operations (FFO) per share estimates for 2017 remained unchanged at $4.96 over the past month. Its share price has increased 7.5% in three months’ time.
Outfront Media’s FFO per share estimates for the current year has remained unchanged at $1.98 in a month’s time. Over the past three months, the stock has declined 5.5%.
Healthcare Trust’s 2017 FFO per share estimates remained unchanged at $1.65 over the past month. The stock has been down 0.6% for the past three months.
Note: All EPS numbers presented in this write up represent funds from operations (“FFO”) per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
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Welltower to Buy Sunrise's Healthcare Communities Portfolio
Healthcare real estate investment trust (REIT) Welltower is making pronounced efforts to strengthen its portfolio of healthcare assets. Most recently, the company announced entering into a definitive agreement for the acquisition of a portfolio of four rental continuing care retirement communities (CCRCs). These communities are located in the top markets of Washington D.C., Miami and Charlottesville Metropolitan Statistical Areas (MSAs).
The communities are currently managed by Sunrise under triple-net lease. However, Welltower will gain landlord’s ownership interest for $368 and convert the communities in a RIDEA structure.
While the company has closed the buyout for one of the communities, the remaining three are slated to be acquired in first-quarter 2018. Welltower estimates generating a nominal year-one cap rate of 7% from this investment.
Currently, the communities offer a wide range of healthcare facilities including independent living, assisted living, memory care and post-acute care services. Through complete ownership of these assets, Welltower anticipates to offer modern and technologically advanced healthcare services. Per management, this portfolio will likely improve the company’s portfolio related to its operator — Sunrise as well as offer higher returns for shareholders.
In a separate press release, Welltower, in partnership with Hines, announced the signing of a joint-venture (JV) deal with a major institutional investor for the development of Sunrise at East 56th Street — an assisted living and memory care community — in midtown Manhattan.
The project will consist of a 16-story facility spanning 130,000 square feet. While construction is underway, the project is scheduled to be completed in the first quarter of 2020.
Notably, this is also the first JV deal where an important institutional investor, a global real estate firm and a healthcare REIT have partnered for the development of an urban senior living building. In fact, steady performance of the health care real estate demonstrates the rationale behind the increasing interest of institutional investors toward asset class.
However, shares of this Zacks Rank #3 (Hold) company have underperformed its industry, in the past year. In fact, the stock has declined 4% compared with the industry’s loss of 3.4% during the same time period.
Better-ranked stocks in the REIT space include Lamar Advertising Company (LAMR - Free Report) , Outfront Media (OUT - Free Report) and Healthcare Trust of America . All three carry a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Lamar’s funds from operations (FFO) per share estimates for 2017 remained unchanged at $4.96 over the past month. Its share price has increased 7.5% in three months’ time.
Outfront Media’s FFO per share estimates for the current year has remained unchanged at $1.98 in a month’s time. Over the past three months, the stock has declined 5.5%.
Healthcare Trust’s 2017 FFO per share estimates remained unchanged at $1.65 over the past month. The stock has been down 0.6% for the past three months.
Note: All EPS numbers presented in this write up represent funds from operations (“FFO”) per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Click here to see them >>