Welltower reported yet another active quarter of acquisitions and investments, completing $1.6 billion of pro rata gross investments, including $1.1 billion in acquisitions and loan funding, as well as $448 million in development funding in the second quarter. One of the largest acquisitions was when the REIT acquired a portfolio of 25 active adult communities in non-coastal East Coast and Midwest markets, including 20 newer vintage properties and five properties currently in development, for $502 million or $172,000 per unit.
In addition to that acquisition, the company bought an assisted living/memory care community in Bakersfield, California for $22 million, or $203,700, per unit, with Oakmont Senior Living taking over operations from Frontier Management. More notably with Oakmont, subsequent to the second quarter Welltower acquired a portfolio of six seniors housing communities in California for $312 million, or $520,000 per unit, the details of which you can read here.
Lastly, Welltower acquired 33 assisted living communities throughout Michigan, Ohio, and Tennessee from StoryPoint Senior Living. During April, the REIT closed on the first tranche of the deal through the acquisition of two recently opened communities in Ohio and Tennessee for a pro rata purchase price of $65 million. Overall, the portfolio was acquired at a significant discount to estimated replacement cost and is expected to generate a high single-digit unlevered IRR.
Moving on to its financial performance, Welltower reported earnings per share of $0.86 in the second quarter, increasing from the year-ago quarter’s $0.79 per share. The company also saw increases in REVpor as well as occupancy across its portfolio. Year-over-year average occupancy did grow by 500 basis points. However, as occupancy grew so did expenses. Costs for the SHO portfolio grew 10.5% in the second quarter, as labor costs continue to rise. Last quarter for Welltower, Levin Pro LTC reported first quarter earnings same-community NOI in its SHOP portfolio grew by 18.4% year over year, which was followed up by an 8.7% increase in the second quarter.
