Senior Housing Properties Trust has completed the sale of its 15-facility skilled nursing portfolio, the company announced.
The real estate investment trust completed the sale of the skilled nursing facilities for $8 million. Ten of the facilities are in Nebraska, four are in Iowa and one is located in Kansas.
Additionally, the REIT completed the sale of the 13 medical office building properties for $18 million. The buildings are located throughout Massachusetts and vary in square footage.
Senior Housing Properties Trust President and Chief Operating Officer Jennifer Francis said the company was “excited to improve SNH’s (Senior Housing Properties Trust) portfolio into one that will produce value, strong returns and growth for our shareholders as the demand in the U.S. for healthcare services and healthcare-related products grows” during an first-quarter earnings call this year.
The company also sold three skilled nursing facilities after the end of the first quarter, on May 1.
The sales were a part of an “aggressive disposition plan” to sell up to $900 million in assets as it works to restructure its business arrangements with Five Star Senior Living — which is the company’s largest tenant.
Five Star Senior Living announced plans to restructure its leasing and management agreement with Senior Housing earlier this year. Those plans are expected to be finalized by Jan. 1, 2020.
“There’s a lot to do between now and then. There’s a lot of licensing that needs to take place, getting SNH licensed,” Francis added. “But I think that we feel pretty comfortable that it will go as expected.”
The company also noted that net proceeds from the sale will be used to repay debts and for general business purposes.
From the November 2019 Issue of McKnight's Long-Term Care News
