Welltower Enters Into Agreement To Acquire Portfolio Of Sunrise Assets

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Jan 02, 2018, 08:00 ET

TOLEDO, Ohio, Jan. 2, 2018 /PRNewswire/ -- Welltower Inc. (NYSE:HCN) today announced it has entered into a definitive agreement to acquire a portfolio of rental continuing care retirement communities ("CCRCs"). The transaction comprises four communities offering a full continuum of care including independent living, assisted living, memory care and post-acute care concentrated in attractive markets within the Washington D.C., Miami and Charlottesville MSAs.

The portfolio is currently managed by Sunrise under triple-net leases. Welltower will acquire the landlord's ownership interest for $368 million and will transition the communities to a RIDEA structure to deliver next generation care. Welltower has closed on one of the communities with the remaining three to follow in the first quarter of 2018. This investment is projected to generate a nominal year one cap rate of 7%.

"We are pleased to announce the acquisition of this unique portfolio. Only Welltower, with our superior relationship investment model, is able to source, execute and unlock immediate value in off market investments such as this," said Tom DeRosa, CEO of Welltower. "These assets, located in top markets, represent both an enhancement to our Sunrise portfolio and a significant above market return for our shareholders."

Sunrise and Welltower Relationship

Founded in 1981 and headquartered in McLean, Virginia, Sunrise Senior Living operates more than 300 communities in the United States, Canada and the United Kingdom, with a total unit capacity of over 30,000. Welltower has over $6 billion of investments with Sunrise Senior Living.

About Welltower

Welltower Inc. (NYSE: HCN), an S&P 500 company headquartered in Toledo, Ohio, is driving the transformation of health care infrastructure. The company invests with leading seniors housing operators, post-acute providers and health systems to fund the real estate infrastructure needed to scale innovative care delivery models and improve people's wellness and overall health care experience. Welltower™, a real estate investment trust ("REIT"), owns interests in properties concentrated in major, high-growth markets in the United States, Canada and the United Kingdom, consisting of seniors housing and post-acute communities and outpatient medical properties. More information is available at www.welltower.com.

Forward-Looking Statements and Risk Factors

This press release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. When Welltower uses words such as "may," "will," "intend," "should," "believe," "expect," "anticipate," "project," "estimate," or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. In particular, these forward-looking statements include, but are not limited to, those relating to Welltower's ability to close the Seniors Housing Property Trust transaction on currently anticipated terms, or within currently anticipated timeframes; the expected performance of Welltower's operators/tenants and properties; Welltower's expected occupancy rates; and Welltower's ability to access capital markets or other sources of funds. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause Welltower's actual results to differ materially from its expectations discussed in the forward-looking statements. This may be a result of various factors, including, but not limited to: the satisfaction of closing conditions to the Seniors Housing Property Trust transaction, including the receipt of regulatory approvals and lender or third-party consents; the respective parties' performance of their obligations under the Seniors Housing Property Trust transaction agreements; the receipt of applicable healthcare licenses and governmental approvals; unanticipated difficulties and/or expenditures relating to the Seniors Housing Property Trust transaction; the status of the economy; the status of capital markets, including availability and cost of capital; changes in financing terms; competition within the health care and seniors housing industries; negative developments in the operating results or financial condition of operators/tenants, including, but not limited to, their ability to pay rent and repay loans; natural disasters and other acts of God affecting Welltower's properties; operator/tenant or joint venture partner bankruptcies or insolvencies; the cooperation of joint venture partners; and other risks described in Welltower's reports filed from time to time with the Securities and Exchange Commission. Finally, Welltower undertakes no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events, or otherwise, or to update the reasons why actual results could differ from those projected in any forward-looking statements.

SOURCE Welltower Inc.