Seniors Housing Business

AUG-SEP 2015

Seniors Housing Business is the magazine that helps you navigate the evolution of the seniors housing industry.

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28 Seniors Housing Business n August-September 2015 Other news Let Our Team Work For You Senior Living Investment Brokerage, Inc.: The leader in Seniors Housing Brokerage Contact Ryan today at 630-858-2501 / / / Don't sell direct when you can leverage the experience of our team of dedicated brokers to generate the controlled competition that will maximize your investment objectives. Allow us to put together a confdential proposal to determine your market value. We'll show you how our services will create value and take advantage of the torrid market. Ryan M. Saul / Managing Director WHAT WE OFFER: • Represent over 30% of announced transactions • Built a team with over 150 yrs. of brokerage experience • Sold over $2,500,000,000 • Assembled largest team of dedicated Sr. Housing brokers • Represent Sellers confdentially • Achieve an average 96% of list price • Preserve wealth for our clients • Manage transactions from start to fnish Ventas skilled nursing spinof Care Capital Properties ofcially goes public Chicago — Care Capital Properties Inc. (NYSE: CCP), the skilled nursing spinoff of giant healthcare REIT Ventas (NYSE: VTR), offcially began trading on the New York Stock Exchange Aug. 18. The company rang the closing bell to celebrate its frst day of trading. CCP primarily owns, acquires and leases skilled nursing facilities across the United States. The com- pany currently owns 355 triple-net leased assets operated by private regional and local care providers. CCP's portfolio spans 37 states and 42 operators. The company expects to generate estimated net operating income (NOI) between $310 million and $320 million, and estimated normalized funds from operations (FFO) between $235 million and $250 million, both on an annualized run-rate basis. "CCP is poised for growth and success as a pure-play skilled nursing focused REIT," says Raymond Lewis, the company's CEO. "CCP has strong operator relationships, an excellent balance sheet and access to capital and is uniquely positioned to capitalize on the signifcant opportunities within the fragmented skilled nursing market." CCP expects to declare a divi- dend of $0.57 per share for the third quarter of 2015, subject to approval by the company's board of directors. The company plans to declare as a REIT for income tax purposes. On July 30, Ventas declared a dividend distribution of one share of CCP common stock for every four shares of Ventas com- mon stock held at the close of business on August 10. CCP has about 84 million fully diluted shares outstanding. Ven- tas has about 336.4 million fully diluted shares outstanding. Capital One acquires Healthcare Financial Services, loans from GE for $9 billion Fairfeld, Conn. — Capital One Financial Corp. (NYSE: COF) has acquired $8.5 billion of healthcare-related loans from GE (NYSE: GE), along with the company's Healthcare Financial Services (HFS) U.S. lending busi- ness, for $9 billion. In a separate transaction, an unnamed buyer purchased $600 million of HFS real estate equity investments from GE. HFS provides fnancing to U.S. healthcare companies, sponsors, investors and developers across healthcare sectors including seniors housing, hospitals, medi- cal offces, outpatient ser- vices, pharmaceuticals and medical devices. Darren Alcus, president and CEO of HFS, will join Capital One. Capital One also will retain the HFS manage- ment team and employees. "We're pleased to sell HFS to a company that is committed to expanding the business," says Keith Sherin, CEO of GE. "Our custom- ers, sponsors and HFS employees will beneft from the synergies of combin- ing Capital One's existing healthcare lending businesses with the expertise, relationships and experience of our highly regarded HFS team." GE is looking to focus on its industrial businesses and is sell- ing most GE Capital assets. GE and its board of directors have determined that market condi- tions are favorable to pursue disposition of those assets. "We are on track to reduce our ending net investment (ENI) by $100 billion by the end of 2015 and expect to be substantially done with our exit strategy by the end of 2016," says Sherin. GE Capital will retain the fnancing verti- cals that relate to GE's indus- trial businesses, including a unit that provides healthcare equip- ment fnancing to GE Healthcare customers and others. The transac- tion is expected to close in the fourth quarter of 2015. Citigroup Global Markets Inc. and J.P. Morgan Securities LLC provided fnancial advice to GE and Hogan Lovells US LLP provided legal advice. Capital One's stock price closed at $80.87 on Aug. 11, up from $78.71 one year earlier. GE's stock price closed at $25.71 on Aug. 11, down from $25.79 one year earlier. — Haisten Willis In May, GE Capital's Healthcare Financial Services (HFS) provided a $48.5 million loan to a joint venture for the purchase of four seniors housing facilities, including Emerald Springs, pictured above, a 148-unit assisted living facility in Yuma, Ariz. Capital One has agreed to purchase HFS along with the majority of the company's existing loan portfolio for $9 billion. "We are on track to reduce our ending net investment by $100 billion by the end of 2015 and expect to be substantially done with our exit strategy by the end of 2016," says Keith Sherin, CEO, GE.

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