Inspīr Carnegie Hill, Omega Healthcare Investors’ and Maplewood Senior Living’s assisted living / memory care high-rise in Manhattan, is on track to open late next year, Omega Chief Corporate Development Officer Steven Insoft told shareholders and analysts Monday on the company’s third-quarter earnings call.
Omega’s relationship with Maplewood is growing and anchors the company’s increasing presence in senior living, he added.
“Our overall senior housing investment now comprises 124 assisted living, independent living and memory care assets in the U.S. and U.K.,” Insoft said. “On a standalone basis, the core portfolio not only covers its lease obligations at 1.2 times, but also represents one of the larger senior housing portfolios amongst the publicly listed healthcare [real estate investment trusts].”
Omega’s senior housing portfolio includes 14 Maplewood communities, he said.
Company investments made in the third quarter, Chief Operating Officer Dan Booth said, included a $131 million secured term loan with an unrelated third party, entered into Sept. 28.
“The loan is secured by a collateral assignment of mortgages covering seven skilled nursing facilities, three independent living facilities and one assisted living facility located in Pennsylvania and Virginia with approximately 1,200 total operating beds,” he said.
The loan has a 9.35% interest rate of 9.35% and a maturity date of Feb. 28. On or before maturity, Omega plans to obtain fee-simple title to the facilities and add them to an existing operator’s master lease, the company said.
Omega sold 71 facilities for $340 million in the first three quarters of 2018, CEO Taylor Pickett said.
“We will likely sell 10 to 15 additional facilities, but the bulk of our asset repositioning sales are now complete, excluding the ultimate outcome of the Orianna portfolio,” he said.
Twenty-three of Omega’s 42 Orianna skilled nursing facilities have been transitioned or sold, leaving 19 facilities to be sold or re-leased, Pickett said.
“With the bulk of our asset sales and repositioning behind us, we expect that in 2019, acquisitions will meaningfully outpace dispositions as we return to our historical growth model,” he said.