Genesis HealthCare Sees Share Value Rebound
It’s no surprise that Genesis HealthCare has seen a significant drop in its share value as a result of Covid-19. The company owns and operates facilities that care for a medically-complex population that is most vulnerable to the virus, which is a huge risk in itself. The horrifying situation at a Life Care Centers facility in Kirkland, Washington, where 129 cases of Covid-19 have been confirmed (81 residents, 34 staff members and 14 visitors) and 35 people have died (more than half of the state’s total), has also colored the image of SNFs in this situation, probably contributing to the flight of capital from the sector’s stocks. During the massive... Read More »
CIT Closes New Generation/Genesis Financing Package
CIT Group Inc. announced its involvement in New Generation Health LLC’s takeover of 19 senior care facilities previously operated by Genesis HealthCare, leading the way on a nearly $100 million financing package. The facilities are located in California, Washington and Nevada and include skilled nursing, assisted living and behavioral health assets. New Generation assumed operational responsibility of all 19 facilities, but also acquired the real estate at seven of the facilities, for a total purchase price of $79 million. Genesis will also retain an indirect 50% interest in the portfolio and provide administrative and back office services, pursuant to administrative support agreements, as... Read More »
Genesis HealthCare Sheds More SNFs
Genesis HealthCare continues to pare down its skilled nursing portfolio, putting the leaner company on surer financial and operational footing. The provider entered into a series of agreements with New Generation Health, LLC to transition operational responsibility for 19 facilities in California, Washington and Nevada. For six of those facilities, Genesis sold both the real estate and operations, while just transferring the operations of the 13 remaining skilled nursing, behavioral health and assisted living facilities, for a total of $79 million. Genesis will still retain an indirect 50% interest in the portfolio, but for day-to-day operations, it’s out. The company will still provide... Read More »
Genesis HealthCare Continues Restructuring
Genesis HealthCare announced additional changes to its capital structure and leased interests in skilled nursing facilities, all for the better. Genesis has partnered with a private investor to purchase 18 nursing facilities previously leased from Welltower and Second Spring Healthcare Investments. Genesis will have a 30% equity stake in these 18 facilities, and lease them from the joint venture entity, but with a big difference. Previously, these 18 facilities had annual rent escalators ranging from 2.0% to 2.5%, but with the new lease, the escalators do not begin until year five of the lease. In addition, Genesis has a fixed-price purchase option to acquire the real estate of these 18... Read More »Schedule a demo
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