As the New Year approaches, many desire a fresh start. That’s certainly true of Sabra Health Care as it eases out of its relationship with Genesis by finalizing the sale of several facilities.
The Irvine, CA, real estate investment trust announced late Wednesday that it completed the sale of four facilities last week, tallying $38.6 million. They’re hoping to finalize the sale of nine more Genesis-leased facilities this week for another $37.1 million, with another three tagged for sale, pending HUD approval. All told, the 16 properties are expected to fetch $108 million.
Sabra Chairman and CEO Rick Matros said he is looking forward to completing the company’s “Genesis exodus” — along with the sale of its Senior Care Properties — to allow for a clean slate when the calendar flips.
“We look forward to a 2019 with the ‘noise’ behind us and a solid platform of operating partners to grow from,” Matros said. “We appreciate this has all taken some time, but the transformation of the company these last 18 months has been critical for us to grow effectively while controlling the narrative ourselves, rather than have that dictated by certain tenants with outsized exposures.”
Sabra’s agreement stipulates that Genesis will pay residual rents to the REIT over the next four years following the sale of each facility, totaling about $10.4 million. The company said it plans to retain eight facilities currently leased to Genesis, which generate about $10.4 million in annual rent.
This is the latest in a string of moves by the REIT to distance itself from problematic skilled nursing portfolios.
