TOLEDO, Ohio, Dec. 4, 2018 /PRNewswire/ -- Welltower
Inc. (NYSE: WELL), today announced new off-market
investment volume of $1.0 billion at
a blended cap rate of 6.4% comprised of 11 separate Seniors Housing
and Medical Office transactions. This investment activity is in
addition to the previously announced $80
million Johns Hopkins
transaction and $400 million 23 asset
MOB portfolio acquisition, totaling $1.5
billion in transactions announced since third quarter
2018.
The Seniors Housing acquisitions consist of $725
million in transaction volume at a blended cap rate of 6.6% across
four separate transactions. Three of these transactions build on
relationships with existing Welltower operating partners. The
Medical Office acquisitions consist of $280
million in transaction volume at a blended cap rate of 5.9%.
This granular activity includes one large, trophy Outpatient
Medical complex with 286k rentable
square feet highlighted below.
Pappas Properties and Atrium Health MOBs
Welltower is
under contract to acquire a 75% ownership interest in two
state-of-the-art "Class A+" medical office buildings under
development in Charlotte, North
Carolina to be delivered in Q2 and Q3 of 2020. Both
buildings are 100% master-leased to Atrium Health (Moody's: Aa3)
for 15 years. This project is part of a 5.5-acre multi-phase health
care anchored mixed-use development located next to Atrium Health's
flagship Carolinas Medical Center campus. Once completed, these
assets will house integrated specialty clinical practices for
Atrium Health including the Sanger Heart and Vascular
Institute.
As part of this transaction, Welltower will form a joint venture
with the highly reputable Southeast developer, Pappas Properties.
The joint venture is exploring additional opportunities to grow in
the region together and can further densify this project with up to
180k additional square feet.
"We are delighted to have selected Welltower as our partner to
develop two state-of-the-art medical office buildings, poised to
deliver next generation care," said Peter
A. Pappas, founder and CEO of Pappas Properties.
"Welltower's immersive health care
strategy, and their industry leading data analytics platform make
for the perfect partner. These properties will serve as an anchor
for our growing relationship."
"Sourcing and executing on organic and cutting-edge investments
are the hallmark of Welltower's differentiated strategy," said
Shankh Mitra, Chief Investment Officer of Welltower. "We continue
to strategically expand with our existing partners and find new
high-quality partners with whom we announced over one and a half
billion dollars in off-market transactions since third quarter
2018. We are very excited to start a new relationship with one of
the most respected developers and health systems in the region,
establishing a foundation for expansive future growth."
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 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 and
post-acute communities and outpatient medical properties. More
information is available at www.welltower.com. We
routinely post important information on our website
at www.welltower.com in the "Investors" section,
including corporate and investor presentations and financial
information. We intend to use our website as a means of
disclosing material, non-public information and for complying with
our disclosure obligations under Regulation FD. Such disclosures
will be included on our website under the heading
"Investors". Accordingly, investors should monitor such
portion of the company's website in addition to following our press
releases, public conference calls and filings with
the Securities and Exchange Commission. The information
on our website is not incorporated by reference in this press
release, and our web address is included as an inactive textual
reference only.
Forward-Looking Statements and Risk Factors
This press release contains "forward-looking statements" as defined
in the Private Securities Litigation Reform Act of 1995. When we
use words such as "may," "will," "intend," "should," "believe,"
"expect," "anticipate," "project," "pro forma," "estimate" or
similar expressions that do not relate solely to historical
matters, we are making forward-looking statements. In particular,
these forward-looking statements include, but are not limited to,
those relating to our opportunities to acquire, develop or sell
properties; our ability to close anticipated acquisitions,
investments or dispositions on currently anticipated terms, or
within currently anticipated timeframes; the expected performance
of our operators/tenants and properties; our expected occupancy
rates; our ability to declare and to make distributions to
shareholders; our investment and financing opportunities and plans;
our continued qualification as a REIT; our ability to access
capital markets or other sources of funds; and our ability to meet
our earnings guidance. Forward-looking statements are not
guarantees of future performance and involve risks and
uncertainties that may cause our actual results to differ
materially from our expectations discussed in the forward-looking
statements. This may be a result of various factors, including, but
not limited to: the status of the economy; the status of capital
markets, including availability and cost of capital; issues facing
the health care industry, including compliance with, and changes
to, regulations and payment policies, responding to government
investigations and punitive settlements and operators'/tenants'
difficulty in cost-effectively obtaining and maintaining adequate
liability and other insurance; changes in financing terms;
competition within the health care and seniors housing industries;
negative developments in the operating results or financial
condition of operators/tenants, including, but not limited to,
their ability to pay rent and repay loans; our ability to
transition or sell properties with profitable results; the failure
to make new investments or acquisitions as and when anticipated;
natural disasters and other acts of God affecting our properties;
our ability to re-lease space at similar rates as vacancies occur;
our ability to timely reinvest sale proceeds at similar rates to
assets sold; operator/tenant or joint venture partner bankruptcies
or insolvencies; the cooperation of joint venture partners;
government regulations
affecting Medicare and Medicaid reimbursement
rates and operational requirements; liability or contract claims by
or against operators/tenants; unanticipated difficulties and/or
expenditures relating to future investments or acquisitions;
environmental laws affecting our properties; changes in rules or
practices governing our financial reporting; the movement of U.S.
and foreign currency exchange rates; our ability to maintain our
qualification as a REIT; key management personnel recruitment and
retention; and other risks described in our reports filed from time
to time with the Securities and Exchange Commission. Finally,
we undertake 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.
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SOURCE Welltower Inc.