Welltower is selling “a prominent seniors housing operating portfolio” for more than $740 million, the Toledo, OH-based real estate investment trust announced in connection with its fourth-quarter 2019 earnings call on Thursday.
The operator wasn’t named, but the portfolio consists of assisted living properties in California, Nevada and Washington, Welltower said. The communities have an overall occupancy rate of 97% and saw net operating income of $36.7 million in 2019, according to the REIT.
Welltower said it entered into the agreement to sell the portfolio in January.
Notable fourth-quarter investments and development activity, according to the REIT, included the acquisition of six new Oakmont Senior Living communities in California for $297 million. Welltower executives had discussed the purchase on the third-quarter 2019 earnings call.
The communities, with a combined 458 units, are in Fresno, Los Angeles, Redding, Sacramento (two) and San Diego, according to supplemental information released in conjunction with the earnings call. As of the fourth quarter, the REIT reported eight Oakmont properties in its portfolio.
Also during the fourth quarter, Welltower closed on an expansion of its relationship with Discovery Senior Living via an off-market acquisition of three recently opened seniors housing communities in in-fill locations in the Jacksonville, Port St. Lucie and Tampa, FL, metropolitan statistical areas for $91 million, or $258,000 per unit. As of the fourth quarter, the REIT has 12 Discovery properties in its portfolio, according to supplemental information released in conjunction with the earnings call.
For 2020, Welltower said it expects same-store net operating income growth of approximately 1% to 2.5% in its seniors housing operating portfolio and 2.25% to 2.75% in its seniors housing triple-net portfolio.