TOLEDO, Ohio, Nov. 4, 2021 /PRNewswire/ -- Welltower
Inc. (NYSE: WELL) or the "Company" today announced that it has
entered into definitive agreements to acquire four distinct seniors
housing portfolios for a pro rata gross investment amount of
$1.3 billion, subject to customary
closing conditions. The execution of these transactions, along with
Welltower's previously announced completion of $4.3 billion of pro rata gross investments
exclusive of development funding, will bring the Company's total
pro rata gross investments to $5.6
billion since October
2020.
"Since pivoting to offense 13 months ago, Welltower is pleased
to have executed on its value-driven investment thesis, largely
through granular and off-market transactions completed at a
significant discount to estimated replacement cost," commented
Shankh Mitra, Welltower's CEO and CIO. "We expect these investments
to drive significant per share cash flow growth and generate high
single-digit to mid-teens unlevered IRR's to Welltower.
Additionally, we have recently observed a meaningful uptick in
potential investment opportunities as the level of motivation from
various sellers has risen, coinciding with further industry
disruption due to the Delta variant and challenging labor
environment. With $5.3 billion of
current near-term liquidity, including $1.0
billion of efficiently raised unsettled equity proceeds, we
are well positioned to capitalize on the robust near-term capital
deployment pipeline and continue to create significant per share
value for our shareholders."
Welltower most recently entered into definitive agreements for a
pro rata gross investment amount of approximately $1.3 billion, which are expected to generate high
single-digit unlevered IRR's, across the following four
portfolios:
$580 million acquisition of 14
property Seniors Housing portfolio
- The portfolio is comprised of eight rental and six entrance fee
communities located in attractive markets across the United States, including Bellevue, WA, Data Point, CA, and Alexandria, VA
- Watermark Retirement Communities will be retained to manage the
portfolio under a highly aligned RIDEA 3.0 management
agreement
- Transaction price represents a 40% discount to estimated
replacement cost
$475 million acquisition of
Nine Seniors Apartment communities
- The Class "A" portfolio is 100% private pay and located in
highly attractive markets
- An existing Welltower operator will assume operations upon
acquisition of the portfolio
$172 million acquisition of
Five Class "A" Seniors Housing properties across Mid-Atlantic and
Southeastern United States
- Recently developed and operated by a best-in-class operator and
developer which will be retained to operate the portfolio under a
highly incentivized contract
- Initiated a long term exclusive strategic partnership agreement
to develop Class "A" Seniors Housing properties across the
Southeast
$119 million acquisition of
Three Seniors Housing properties
- Recently developed portfolio carries an average age of 2 years
with properties located in fast growing micro-markets in the
Midwest
- New Perspective, an existing Welltower operator, will assume
operations under a strongly aligned RIDEA 3.0 management
contract
- Portfolio has further development and densification
opportunities
Welltower's strong balance sheet and recent capital markets
activity provides the Company with ample capacity to fund its
robust pipeline of investment opportunities. Since June 30, 2021, Welltower has issued approximately
$1.0 billion of equity through its
at-the-market program via forward sale agreements at an average
price of $84.36 per share.
Additionally, the Company's near-term liquidity totals $5.3 billion, inclusive of $1.3 billion of the aforementioned unsettled
forward equity proceeds and expected proceeds from assets
classified as held for sale and anticipated loan payoffs as of
September 30, 2021, in addition to
$4.0 billion in cash and cash
equivalents and available capacity under its line of credit.
Forward-Looking Statement
This press release may
contain "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.
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 Welltower's expectations discussed in the
forward-looking statements. This may be a result of various
factors, including, but not limited to, those factors discussed
in Welltower's reports filed from time to time with
the SEC. 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.
About Welltower
Welltower® Inc. (NYSE:
WELL), 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 and 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, post-acute
communities and outpatient medical properties. More information is
available at www.welltower.com.
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SOURCE Welltower Inc.