Omega Healthcare announced the completion of a $735 million acquisition of 60 facilities during a third-quarter earnings call in November.
The transaction consisted of 58 skilled nursing facilities and two assisted living facilities located in Florida, North Carolina, Mississippi, Louisiana, Idaho, Kentucky, Missouri and Montana. They have a combined 6,950 beds.
The Maryland-based real estate investment trust also has agreed to purchase a 49% interest in a UK senior housing joint venture for $90 million in a deal with Healthpeak Properties (formerly HCP).
Additionally, the company received $750,000 in rent payments from Texas operator Daybreak Venture during the quarter, which was below its expectations. Executives hinted at replacing the operator in some areas.
“Although the ultimate structure of this resolution is still being finalized, we believe the resulting rents will be at the mid- to high-end of the previously indicated range of $3 (million) to $5 million dollars per quarter,” CEO Taylor Pickett said.
He also noted that Omega and its skilled nursing operators remain optimistic about the newly implemented Patient Driven Payment Model.
“When combined with the recent 2.4% increase in Medicare reimbursement and the promising demographic tailwinds, we believe our operators are well-positioned to weather the continued labor cost pressures and generate solid financial performance over time,” Pickett said.
From the December 2019 Issue of McKnight's Long-Term Care News
