New Senior Investment Group has completed the internalization of its management function, the publicly traded real estate investment trust announced Thursday.

The process was finished by Jan. 1, as expected, New Senior said. As a result, New Senior has terminated its external management contract with FIG LLC, an affiliate of Fortress Investment Group. Fortress co-founder and co-CEO Wesley R. Edens also has resigned from the New Senior Board of Directors.

The termination and cooperation agreement called for New Senior to make a one-time cash payment of $10 million to the manager and issue 400,000 shares of newly created series A cumulative perpetual preferred stock, with a liquidation preference amount of $100 per share and paying a cumulative quarterly cash dividend at a rate of 6% a year.

The REIT expects that bringing the management function in-house will save costs, simplify the firm’s organizational structure and perhaps expand its ownership base.

As previously announced Dec. 21, David Smith has been appointed executive vice president and chief financial officer, and Bhairav Patel has been appointed executive vice president of finance and accounting. In addition to them, the post-internalization management team includes New Senior CEO Susan Givens.

As of Sept. 30, New Senior’s portfolio included 133 properties across 37 states. Independent living, assisted living, memory care and continuing care retirement community operators represented in the portfolio include Holiday Retirement, Blue Harbor Senior Living, JEA Senior Living, Thrive Senior Living and Watermark Retirement Communities.

The REIT first announced its intentions to bring management in-house in August. The move is the result of a strategic review announced in February to increase shareholder value in response to “negative pressures” related to supply and increased competition.

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