Welltower is approaching the finish line in its exit from its relationship with Genesis HealthCare, the company reported Tuesday.
The Ohio-based real estate investment trust closed on the sale of seven more Genesis properties for a gross purchase price of $75 million during the first quarter of 2022. Welltower also closed on the sale of two other properties for $17 million in April.
The company also has a forward sale agreement for the properties valued at $182 million. That deal is expected to close “simultaneously with the exercise of Welltower’s bargain purchase option,” executives said. Welltower owns more than 1,800 facilities across the United States, Canada and the United Kingdom, and just 94 of those are long-term/post-acute care facilities.
“With the completion of these transactions, Welltower has substantially exited its relationship with Genesis,” the company reported in a first-quarter earnings release Tuesday. Genesis has been on the rebound after months of financial uncertainty exacerbated by the COVID-19 pandemic.
“One property remains in the lease between Welltower and Genesis and seven properties that were formerly under a sub-lease from Welltower to Genesis are now leased to a new regional operator.”
Welltower in March 2021 announced it was cutting most of its ties with Genesis in a massive $880 million deal, which included terminating leases with the nursing home giant on 51 of its properties.
The Ohio-based REIT has since announced plans to develop care homes in the United Kingdom.