Genesis HealthCare is nearing its total exit from the state of Texas, completing the sale of 16 skilled nursing facilities (15 owned and one leased) in the state. Genesis had also previously exited the operations on another leased facility and now has just seven SNFs under operation in Texas. All are expected to be sold in the fourth quarter of 2018 as part of a greater process by Genesis to divest underperforming or non-strategic assets. Aggregate revenues and EBITDA for the entire Texas portfolio (24 facilities) was approximately $175 million and $7 million, respectively.

The exit is expected to reduce indebtedness by about $94 million, a significant step for the company that is still trying to increase census, improve its capital structure and turn around operations.