Welltower: Riding Out The Storm
There were no surprises in Welltower’s fourth quarter and full-year 2021 earnings report, which we suppose is a good thing. Could the seniors housing portfolio be performing better? Yes, but so could everyone else’s portfolio. The U.S. seniors housing owned portfolio (SHOP) has seen a slowdown in census increase, with no change in December, which followed a 50-bp rise in November and 30-bp increase in October. That results in 80 basis points of census increase in three months, compared with 260 bp in the third quarter previous and 280 bps in the second quarter. While there is some seasonality in that fourth quarter number, we also may have seen the end of the “post-lockdown” boost, or the... Read More »
Welltower Updates Census Progress
Welltower has the largest owned portfolio of seniors housing communities among the healthcare REITs (SHOP) and census has been steadily rising since the bottom early last year. But the rate of growth, like many others, has been slowing. Average U.S. occupancy growth was 30 basis points in October, 50 basis points in November and zero in December. Spot occupancy for the U.S. portfolio ended December at 77.8%, or 90 basis points above September 30. That’s not too bad for a fourth quarter, but December was disappointing and most likely reflected the holiday season as well as the spreading Omicron variant. Up until December they had had nine consecutive months of increased occupancy. The good... Read More »
Welltower Announces Four More Portfolio Acquisitions
Welltower continues to double down on its seniors housing acquisition strategy, planning to spend another $1.3 billion to purchase four separate portfolios total 31 properties, as revealed in its Q3 earnings report. The news also came after Healthpeak Properties announced in its own third quarter earnings that it had completed its exit from the seniors housing industry. So as one “Big Three” REIT leaves, another cements its status as number one. The largest of the deals was the $580 million acquisition of eight rental and six entrance-fee communities affluent markets in Washington, California and Virginia. It appears this is The Fountains portfolio, owned by NorthStar Healthcare Income... Read More »
KeyBank Announces Unitranche Loan Program with Welltower
On the eve of NIC, KeyBank Real Estate Capital announced a new unitranche loan program with Welltower, Inc., and we hope it resulted in some meetings with curious potential clients. Entitled the Healthcare Real Estate Fund, it will total $750 million in lending capacity to provide first mortgage financing on seniors housing communities and skilled nursing facilities. Terms are expected to be between three and five years, with loan amounts ranging from $25 million to $75 million, approximately. Since the unitranche loan blends senior and junior debt pricing and terms into a single first lien debt facility rather than creating two classes of debt and coordinating among multiple... Read More »Schedule a demo
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