Separately, Genesis on Wednesday announced that the leases on 64 properties formerly owned by Weltower would now be held by Second Spring Healthcare Investments, a JV formed by affiliates of Lindsay Goldberg LLC and affiliates of Omega Healthcare Investors Inc. Second Spring is paying $1.1 billion to acquire the real estate from Welltower, with Omega taking a minority interest in the JV and serving as asset manager on the properties.

On Wednesday, Welltower also disclosed its third-quarter results, which included a 4% increase year-over-year in normalized funds from operations to $1.16 per share and a 5% Y-O-Y gain in normalized funds available for distribution of $1.04 per share. Q3 results were positively impacted by strong trailing-four-quarter average total same-store NOI growth, net investments of $2.6 billion and average net debt to undepreciated book capitalization ratio of 39%.

TOLEDO, OH—Welltower Inc. on Wednesday more than tripled its 2016 disposition guidance from $1.3 billion to $4.1 billion, with a view toward significantly decreasing its long-term/post-acute care exposure. To that end, the healthcare REIT and Beijing-based Cindat Capital Management Ltd. and Union Life Insurance Co. Ltd have agreed to form a joint venture in which the two Chinese firms will invest $930 million into a Welltower portfolio of seniors housing and long-term/post-acute assets, with Welltower retaining a 25% interest.

In all, Welltower expects to execute on $3.3 billion in disposition proceeds during the fourth quarter, including $1.9 billion of long-term/post-acute care, $1.2 billion of seniors housing triple-net, $51 million of seniors housing operating and $150 million of loan payoffs. The total 2016 estimated disposition proceeds forecast includes approximately $1.7 billion of Genesis Healthcare Inc. properties to be executed in three separate transactions where Welltower has either closed or entered into definitive agreements.

Welltower sees the dispositions as integral to a strategic repositioning of its portfolio. “This repositioning will strengthen our focus on premium private-pay health care real estate, reinforce our industry-leading balance sheet strength and enhance our operating and financial performance,” says Tom DeRosa, CEO of Welltower.

The JV covers 28 properties leased to Genesis and 11 leased to Brookdale Senior Living Inc. “With aging demographics and US healthcare trends driving the need for innovative health care infrastructure, we believe the sector represents an attractive long-term investment opportunity,” says Cindat CEO Greg Peng. The transaction is expected to close by year-end.

Separately, Genesis on Wednesday announced that the leases on 64 properties formerly owned by Weltower would now be held by Second Spring Healthcare Investments, a JV formed by affiliates of Lindsay Goldberg LLC and affiliates of Omega Healthcare Investors Inc. Second Spring is paying $1.1 billion to acquire the real estate from Welltower, with Omega taking a minority interest in the JV and serving as asset manager on the properties.

On Wednesday, Welltower also disclosed its third-quarter results, which included a 4% increase year-over-year in normalized funds from operations to $1.16 per share and a 5% Y-O-Y gain in normalized funds available for distribution of $1.04 per share. Q3 results were positively impacted by strong trailing-four-quarter average total same-store NOI growth, net investments of $2.6 billion and average net debt to undepreciated book capitalization ratio of 39%.