The CEOs of two large senior housing real estate investment trusts reassured their residents, staff and investors Tuesday that the companies are prioritizing resident and staff health and safety above all else amidst the coronavirus diseases 2019 (COVID-19) pandemic.
“Elevated protocols were put in place as early as late January which, if we look at our Seattle area assets, tells us they are helping to mitigate the spread of the virus and protect our resident base,” Welltower Chairman and CEO Thomas DeRosa said in a press release. DeRosa also noted that although elevated protocols might mean a slower new resident flow in the short term, the REIT also has seen a commensurate decline in voluntary move outs and higher lead-to-closing ratios. Senior housing occupancy levels also have remained stable over the past four weeks, he added.
“Specifically, in the Seattle [metropolitan statistical area], our portfolio remained stable with an average weekly occupancy of 83.9%, with a range from 83.8% to 84% over the last four weeks,” he said.
Debra A. Cafaro, chairman and CEO of Ventas, noted in a press release that the company’s 2020 results through February were in line with previously announced expectations. As the pandemic continues its spread, however, in an effort to maintain a strong balance sheet, liquidity and financial flexibility, the REIT has taken some financial precautions, including drawing $2.75 billion from its revolving line of credit and withdrawing its 2020 guidance.
“Ventas has a long track record of successfully preparing for, and managing through, dynamic and challenging market conditions,” she said. “Our diversified portfolio, leading operating partners and experienced and tenured team are important assets in these extraordinary times.”
In other company news, Genesis Healthcare reported a loss Monday of $11.4 million in its fourth quarter of 2019. The Kennett Square, PA-based company said it had a loss of 10 cents per share.
The operator of nursing homes and senior living communities posted revenue of $1.14 billion in the period. For the year, the company reported net income of $14.6 million, or 10 cents per share. Revenue was reported as $4.57 billion.