TOLEDO,
Ohio, May 10, 2022 /PRNewswire/ --
Welltower® Inc. (NYSE: WELL) or the "Company" today
announced the deepening of its strategic partnership
with Oakmont Management Group ("Oakmont"), a leading West
Coast operator of Class A communities focused on specialized
resident health and wellness programming. The Company has agreed to
purchase seven senior living communities, subject to customary
closing conditions, which Oakmont will operate under an aligned
RIDEA 3.0 contract.
The seven properties are located in affluent markets in
California and include four rental
properties and three continuing care retirement communities (entry
fee as well as rental), including Fountaingrove Lodge, the nation's
first LGBTQ and Friends-focused CCRC. The portfolio has geographic
overlap with the Company's current footprint, which is expected to
result in cost saving and revenue enhancement opportunities by
leveraging Oakmont's operating acumen and marketing efforts.
Additionally, three of the traditional rental communities opened in
2021 and are anticipated to generate significant occupancy, margin,
and cash flow growth in 2023 and beyond. The total investment will
be approximately $344 million and is expected to generate
a high-single-digit unlevered IRR. The transaction is anticipated
to be funded through cash on hand and the issuance of operating
partnership units.
Following this transaction, the Welltower-Oakmont partnership
will comprise 22 assets across highly-desirable micro markets
in California with an additional three properties in
development. "We are excited about the meaningful expansion of our
Oakmont-operated portfolio since the relationship was first seeded
through the purchase of two properties in 2015," said Shankh Mitra,
Welltower's CEO and CIO. "This rapid portfolio growth exemplifies
our belief that best-in-class operators will gain significant scale
in the post-pandemic environment, and we look forward to announcing
further additions to our partnership in the future. Courtney and
her team continue to meaningfully outperform both their underlying
markets and the industry, and Oakmont was among the first senior
housing operators in our portfolio to return to the 90% occupancy
mark post-COVID."
"We are excited to meaningfully expand our strategic
relationship with Welltower through the acquisition of these seven
communities in our target markets," said Courtney Siegel,
Oakmont President and CEO. "Welltower's well-capitalized
balance sheet and unparalleled data analytics platform have allowed
us to quickly realize efficiencies of scale, and we expect a
further significant expansion in the relationship over the next
decade through acquisition and development under our two companies'
exclusive development agreement."
Following the completion of the transaction, the Company's
year-to-date closed or announced pro rata gross investment activity
will total approximately $2.0
billion. Mitra added, "2022 has marked one of the most
active starts to a year for transaction activity in Welltower's
history. We continue to have a robust pipeline of attractively
priced investment opportunities across all of our major property
types with the challenging labor environment, in combination with
rising interest rates, increasing the motivation of various owners
to sell."
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.
About Oakmont Management Group
Oakmont Management Group, based in Irvine California, is a
recognized leader in the senior living industry that manages a
portfolio of communities under the Oakmont Senior Living and Ivy
Living brand. Oakmont currently serves over 4,500 seniors across
more than 50 communities in California and Nevada.
Residents receive customized care services delivered in luxurious,
resort-style settings. With an impressive array of high-quality
amenities and compassionate team members, residents at Oakmont
benefit from the finest senior living experience in the industry.
For more information about Oakmont,
visit www.oakmontseniorliving.com
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SOURCE Welltower Inc.