Health Care REIT, a Toledo, Ohio-based real estate investment trust, has completed the $2.4 billion acquisition of privately-owned Genesis HealthCare, which was originally announced in February.
The long-term, triple-net lease, which covers 147 post-acute, skilled nursing and assisted living facilities in 11 Northeast and Mid-Atlantic states, closed on April 1.
[See related story: Health Care REIT to acquire Genesis]
“The Genesis and Health Care REIT teams worked efficiently to close this transaction on an accelerated timeline,” said George L. Chapman, Health Care REIT’s chairperson, chief executive officer and president. “These high-quality assets are located in attractive metropolitan markets with high barriers to entry, significant hospital system referral relationships and high replacement costs. We expect Health Care REIT’s acquisition and leaseback of Genesis HealthCare assets will be highly accretive to HCN’s earnings."
Genesis provides short-term post-acute, rehabilitation, assisted living and long-term care services in more than 200 locations in 13 eastern states.
In conjunction with the closing of the Genesis transaction, Health Care REIT also announced an increase of its full-year 2011 FFO per-share guidance, solely to reflect the closings of the transactions.
Health Care REIT is increasing FFO guidance by 7 cents per diluted share from a range of $3.25 to $3.35 per diluted share to a range of $3.32 to $3.42 per diluted share, which represents an increase of 8 percent to 11 percent from 2010.
The increase relative to prior guidance reflects the timing of the closing of:
- $890 million Benchmark Senior Living transaction on March 28;
- $2.4 billion Genesis HealthCare transaction on April 1;
- $141 million Capital Senior Living transaction expected to close in April;
- $2.1 billion in offerings of common stock and cumulative convertible perpetual preferred stock on March 7; and
- $1.4 billion in offerings of unsecured senior notes on March 14.
FAD guidance remains unchanged at $3.01 to $3.11 per diluted share, which represents an increase of 6 percent to 10 percent from 2010.
The company intends to discuss the financial impact of these transactions and capital activity in greater detail on its first quarter 2011 earnings conference call scheduled for Tuesday, May 3.