Welltower has sold 17.5 million shares of common stock to BofA Securities and Goldman Sachs & Co. and intends to use the net proceeds to acquire senior living communities and skilled nursing facilities, the Toledo, OH-based real estate investment trust announced Monday.
Use of the funds will include properties currently under contract, and funds also will be used for general corporate purposes.
As of Sept. 30, the REIT had approximately $6.7 billion of available liquidity, including $2.7 billion of available cash and restricted cash and full capacity under its $4 billion line of credit.
The stock sale announcement comes less than a week after Welltower CEO Shankh Mitra said on the company’s third-quarter earnings call that the REIT has “creative” opportunities in the pipeline.
According to a business update issued in conjunction with that earnings call, Welltower had $1 billion of fully funded investments under contract. The company had entered into agreements to purchase an incremental $2 billion of properties as of Nov. 6, according to Monday’s announcement.
“In total, the $3 billion of granular acquisition activity is comprised of approximately $2.4 billion and $600 million of investments in the seniors housing and skilled nursing sectors, respectively,” the company said. “Pending such use, the net proceeds may be invested in short-term, investment grade, interest-bearing securities, certificates of deposit or indirect or guaranteed obligations of the United States.”
