Seniors Housing Business

JUL 2018

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

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Page 12 of 40

Acquisitions 12 Seniors Housing Business n July 2018 HCP, Sabra complete previously announced dispositions totaling over $1 billion Irvine, Calif. — Sabra Health Care REIT (NASDAQ: SBRA) and HCP Inc. (NYSE: HCP), two unrelated healthcare REITs both based in Ir- vine, have completed a series of previously planned property sales totaling more than $1 billion via a series of transactions. HCP completed the disposition of its remaining investment in its joint venture with Columbia Pacific Advisors. Known as RIDEA II, the sale included 49 communities (46 of which are operated by Brookdale Senior Living). The sale resulted in $332 million in proceeds to HCP. Additionally, HCP has advanced its plan to sell or replace the op- erator for its entire portfolio of 68 Brookdale-operated communities. The REIT entered a definitive agree- ment to sell 22 of those communities totaling 2,781 units for $428 million to an undisclosed buyer. In separate transactions, HCP sold five Brookdale-operated com- munities totaling 353 units for $32 million, and an additional 15 com- munities totaling 1,433 units for $98 million. Some of those trans- actions are completed, while oth- ers are scheduled to finish during third-quarter 2018. HCP has also transferred man- agement of 18 Brookdale-operated communities to Atria Senior Living and one to Sonata Senior Living. For its remaining 21 Brookdale- operated communities, HCP is fi- nalizing agreements with some op- erators to take over management, while marketing other properties for sale. HCP estimates the remaining un- finished deals will be completed sometime during 2018. "We are pleased to demonstrate continued progress executing on our strategic portfolio reposition- ing," says Tom Herzog, president and CEO of HCP. "The vast ma- jority of dispositions transactions are now closed or under contract, resulting in a seniors housing portfolio with improved operator diversification and stronger de- mographics. Additionally, the pro- ceeds generated from these sales will further strengthen our balance sheet." Sabra, meanwhile, completed a massive skilled nursing sell-off. Via two separate dispositions, the REIT sold 19 skilled nursing facilities and one seniors housing commu- nity for a total of $174 million. The previously announced transactions included a 12-prop- erty, Genesis Healthcare-operated portfolio sold for $134 million and an eight-property skilled nursing portfolio formerly owned by Care Capital Properties for $40 million. The buyers were not disclosed. Sabra acquired Care Capital Properties in 2017. The company was also a publicly traded health- care REIT, and the skilled nursing spin-off of seniors housing giant Ventas. The sales will result in a $16.4 mil- lion loss of annual rent obligations to Sabra. The REIT plans to use the proceeds to repay borrowings un- der its revolving credit facility. Through one of its funds, Harrison Street owns Somerby Peachtree City, an independent living, assisted living and memory care community in the Atlanta suburb of Peachtree City.

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