Health Treatment REIT in $2.4B Genesis property deal
Well being Treatment REIT (HCN) is obtaining the property of rehabilitation facility and nursing home operator Genesis HealthCare for $2.four billion inside the 2nd significant well being treatment real estate offer introduced Monday.
The Toledo, Ohio, business mentioned it will get all of Genesis’ actual estate assets, which incorporate 147 post-acute treatment, rehabilitation, assisted dwelling and long-term care services in 11 states across the Northeast and Mid-Atlantic regions. It will have an choice to buy a nine.9-percent stake in Genesis for $47 million. Genesis of Kennett Square, Pa., will continue to operate the amenities.
Before Monday, health care REIT Ventas (VTR) agreed to purchase Nationwide Wellness Properties (NHP) in an all-stock deal really worth $5.eight billion. The deal would give Ventas far more than 1,300 assets. The Chicago company’s properties are located in 47 states, the District of Columbia, and two Canadian provinces.
Well being Treatment REIT is getting the assets from JER Partners and Formation Capital LLC. The boards of Health Treatment REIT and Genesis have both accredited the offer. The firm mentioned it expects the sale to shut during the 2nd quarter assuming regulators approve.
The enterprise stated it strategies to promote 25 million shares of stock and $625 million in convertible favored stock to finance the deal. The underwriters of that providing may have an choice to purchase as much as 3.8 million common shares and $93.8 million in favored stock to cover any over allotments. Well being Care REIT also obtained a dedication for any bridge mortgage worth as a lot as $2.four billion.
Health Treatment REIT mentioned it expects $198 million in lease inside the very first year after closing. The deal is predicted to enhance its yearly money from functions by 39 cents per share. Money from functions, which adds in these goods as amortization and depreciation, is considered key to measuring the monetary efficiency of real estate investment trusts.
Genesis mentioned its greatest markets contain Massachusetts, Maryland, New Jersey, Pennsylvania and West Virginia. The deal would give Health Care REIT 880 properties with a complete value of $13 billion. The company stated it’ll have about 120 clinical specialty models.
Shares of Well being Treatment REIT rose $1.36, or 2.7%, to $52.22 Monday. In aftermarket trading the stock lost $1.40, or 2.7%, to $50.82.
