Newton, MA-based Senior Housing Properties Trust (SNH) has completed the sale of a portfolio of 15 skilled nursing facilities for a total of $8 million, the real estate investment trust announced Monday.
Ten of the SNFs are in Nebraska, four are in Iowa and one is in Kansas.
SNH also announced the completion of the sale of a portfolio of 13 Reliant Medical Group medical office buildings for $18 million. The REIT said the dispositions were part of its previously announced plan to sell up to $900 million in assets by the end of 2019 in connection with the restructuring of its business arrangements with Five Star Senior Living.
SNH previously said that for the sales it planned to focus on underperforming senior living communities and non-healthcare related assets, including wellness centers and all of its stand-alone skilled nursing facilities. The REIT’s long-term strategy remains the same — expanding its medical office and life science buildings portfolio, SNH President and Chief Operating Officer Jennifer Francis said in April.
Net proceeds from the sales will be used for repayment of debt and general business purposes, according to SNH.
As of June 30, the REIT had 35 SNFs in its portfolio, according to its most recent quarterly report filed with the Securities and Exchange Commission. SNFs represented 3% of the REIT’s net operating income, compared with 27% for life science properties, 23% for both MOBs and independent living (each), 21% for assisted living and 3% for wellness centers, according to an investor presentation on the REIT’s website.