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Welltower Supersizes Disposition Guidance

TOLEDO, OH—With the healthcare REIT now targeting $4.1 billion in dispositions this year, CEO Tom DeRosa says the repositioning will strengthen the company's focus on premium private-pay health care real estate.

By Paul Bubny | paulbubny | Updated on November 02, 2016

CEO Thomas DeRosa of Welltower DeRosa: says the repositioning will reinforce “our industry-leading balance sheet strength.”

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.

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