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Welltower Announces JV With Invesco Real Estate Worth $850M
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Welltower Inc. (WELL - Free Report) recently announced a joint venture (JV) with Invesco Real Estate, for a portfolio of 35 medical office buildings (MOBs), worth $850 million. Notably, Welltower, previously with the full ownership of the properties, will now retain 15% economic interest in the portfolio.
Further, going by the recent presentation, where the company provided an update on its outpatient medical acquisition activities, it will receive $722.5 million from this JV.
Specifically, the MOBs, spanning 2.6 million square feet across 15 states, are 100% affiliated with health systems. Considering the portfolio’s average age of 19 years, the properties have been experiencing strong second-generation leasing and occupancy. In fact, the portfolio has a weighted average lease term of five years and is 89% occupied.
Shankh Mitra, Welltower's executive vice president and chief investment officer noted, “Welltower's relationship driven investment approach contributes directly to the strength of our platform, and we think this relationship with Invesco will create significant value for our shareholders."
Welltower has an upbeat outlook for the health care space and is, hence, strategically deploying capital in its outpatient medical platform. Notably, there has been a significant increase in outpatient visits compared with in-patient admissions.
Banking on this, the company is optimizing its portfolio and growing relationships with strategic health system partners and deploying capital in strategic acquisitions. In fact, year to date, Welltower closed and announced pro rata outpatient medical acquisitions amounting to $3.5 billion.
To pursue these opportunities, the company is prudently accessing both public and private capital market across market cycles. This, in turn, helps maintain a decent balance-sheet position.
Given the favorable secular trends and growing need for value-based care, Welltower’s efforts to strengthen its outpatient medical footprint will drive long-term growth.
Cousins Properties Incorporated (CUZ - Free Report) currently carries a Zacks Rank of 2 (Buy). The Zacks Consensus Estimate for the ongoing year’s funds from operations (FFO) per share climbed 1.4% to $2.94 in a month’s time.
Healthcare Realty Trust Incorporated (HR - Free Report) carries a Zacks Rank of 2, presently. The company’s FFO per share estimate for this year moved 1.2% north to $1.6 over the past week.
EastGroup Properties, Inc. (EGP - Free Report) also carries a Zacks Rank of 2, presently. The company’s FFO per share estimate for 2019 moved up to $4.94 over the past month.
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Welltower Announces JV With Invesco Real Estate Worth $850M
Welltower Inc. (WELL - Free Report) recently announced a joint venture (JV) with Invesco Real Estate, for a portfolio of 35 medical office buildings (MOBs), worth $850 million. Notably, Welltower, previously with the full ownership of the properties, will now retain 15% economic interest in the portfolio.
Further, going by the recent presentation, where the company provided an update on its outpatient medical acquisition activities, it will receive $722.5 million from this JV.
Specifically, the MOBs, spanning 2.6 million square feet across 15 states, are 100% affiliated with health systems. Considering the portfolio’s average age of 19 years, the properties have been experiencing strong second-generation leasing and occupancy. In fact, the portfolio has a weighted average lease term of five years and is 89% occupied.
Shankh Mitra, Welltower's executive vice president and chief investment officer noted, “Welltower's relationship driven investment approach contributes directly to the strength of our platform, and we think this relationship with Invesco will create significant value for our shareholders."
Welltower has an upbeat outlook for the health care space and is, hence, strategically deploying capital in its outpatient medical platform. Notably, there has been a significant increase in outpatient visits compared with in-patient admissions.
Banking on this, the company is optimizing its portfolio and growing relationships with strategic health system partners and deploying capital in strategic acquisitions. In fact, year to date, Welltower closed and announced pro rata outpatient medical acquisitions amounting to $3.5 billion.
To pursue these opportunities, the company is prudently accessing both public and private capital market across market cycles. This, in turn, helps maintain a decent balance-sheet position.
Given the favorable secular trends and growing need for value-based care, Welltower’s efforts to strengthen its outpatient medical footprint will drive long-term growth.
Over the past six months, shares of this Zacks Rank #3 (Hold) company have gained 6.9%, as compared with the industry’s rally of 3.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks to Consider
Cousins Properties Incorporated (CUZ - Free Report) currently carries a Zacks Rank of 2 (Buy). The Zacks Consensus Estimate for the ongoing year’s funds from operations (FFO) per share climbed 1.4% to $2.94 in a month’s time.
Healthcare Realty Trust Incorporated (HR - Free Report) carries a Zacks Rank of 2, presently. The company’s FFO per share estimate for this year moved 1.2% north to $1.6 over the past week.
EastGroup Properties, Inc. (EGP - Free Report) also carries a Zacks Rank of 2, presently. The company’s FFO per share estimate for 2019 moved up to $4.94 over the past month.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>