Toledo, OH-based real estate investment trust Welltower announced Friday that occupancy within its senior housing operating portfolio has fallen by 1.2% since March 27, declining from a rate of 85.4% to 84.2% as of April 10.
Although the REIT noted that operating expenses had trended slightly below expectations through February, Welltower also reported that the portfolio incurred approximately $7 million of unanticipated property-level expenses associated with COVID-19 in March. Added labor and personal protective equipment expenses largely fueled the increase.
Despite its strong balance sheet of approximately $3.5 billion of near-term available liquidity and no material unsecured debt maturities until 2023, Welltower has decided to withdraw all of its full-year 2020 guidance, originally provided Feb. 12.
“Welltower’s primary focus is on the ongoing support of our operating partners through these unprecedented times,” Chairman and CEO Thomas J. DeRosa said. “While the impact of COVID-19 on our industry remains uncertain, we remain committed to making informed decisions during these turbulent times which we believe will lead to the long-term success of the company.”
Earlier this month, Welltower announced that it had settled forward sale agreements covering 6.8 million shares of common stock and closed on its previously announced $1 billion two-year unsecured loan, in an effort to enhance liquidity.
