Sabra Health Care REIT, Inc. (Nasdaq: SBRA) kicked off the new year by announcing the sale of 20 skilled nursing facilities operated by Genesis Healthcare, Inc. (NYSE: GEN).
The deal, which netted Sabra $103.3 million, covers facilities across Kentucky, Ohio, and Indiana, the Irvine, Calif.-based real estate investment trust (REIT) announced. The buyers were not disclosed.
The 20 SNFs were included in the initial batch of 35 Genesis facilities that Sabra agreed to sell last year; of that group, 24 have since been sold, Sabra CEO Rick Matros confirmed to Skilled Nursing News on Tuesday.
With the deal, which closed December 22, Sabra starts 2018 with a major milestone in its “Genesis Exodus” — the REIT’s name for its plan to completely divest from Genesis by the end of the year. Last September, Sabra announced that it had already engaged with a broker to sell off its remaining 43 SNFs before 2018 comes to a close.
In the wake of this most recent move, Genesis’s rent bill to Sabra will drop by $9.3 million, the REIT said. Sabra will use the sale proceeds to pay back some loans under its revolving credit facility.
The Kennett Square, Pa.-based Genesis had a rocky 2017, announcing a major restructuring plan and receiving a stock delisting warning from the New York Stock Exchange in November.
A representative from Genesis had not responded to a request for comment as of press time.
Written by Alex Spanko
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