Sabra Sells 12 Genesis Facilities, 8 Former CCP Buildings for $174M
Sabra Health Care REIT (Nasdaq: SBRA) on Monday announced the sale of 20 total buildings as its so-called “Genesis Exodus” nears completion.
The Irvine, Calif.-based real estate investment trust (REIT) closed on the sale of 12 more properties operated by Genesis Healthcare (NYSE: GEN) last Friday, with a total price tag of $134 million. That portfolio included 11 skilled nursing facilities and one senior housing community in New Hampshire and Florida, and Genesis will see its rent obligation fall by $12 million as a result of the sale.
In a separate transaction, closed last Thursday, Sabra sold eight Indiana skilled nursing facilities for $40 million. The REIT had acquired those buildings in its August 2017 purchase of Care Capital Properties, a nearly “pure play” REIT that had specialized in skilled nursing assets.
The unnamed tenant in the Hoosier State will pay Sabra $4.4 million less per year, the REIT said.
The previously-announced deals bring Sabra closer to completing its plan to substantially reduce its exposure to the troubled Genesis. At the time of the REIT’s first-quarter earnings call last month, Sabra had 48 Genesis facilities remaining in its portfolio, with 25 under contract and 15 with letters of intent in place.
The other eight facilities will stay under Sabra’s control after the “Genesis Exodus” is complete, bringing the REIT annual cash rents of $10.4 million.
“[Genesis] actually reported a good quarter this morning, but that said, we’re getting pretty close to the point where our Old Testament is done with,” Matros quipped on the call.
Written by Alex Spanko