Sabra Health Care REIT (Nasdaq: SBRA) completed the sale of nine facilities leased to Genesis Healthcare (NYSE: GEN) for $81.4 million and one facility leased to Signature HealthCARE for $7 million.
The Genesis facilities included seven skilled nursing facilities, one senior housing community and one continuing care retirement community (CCRC). As a result of the sale, Genesis’ annual rent obligations to Sabra were reduced by $7.4 million, according to a press release announcing the sale. The sale of the Genesis facilities was completed on June 29.
The Signature SNF sale reduced yearly rent obligations to Sabra by $600,000. The sale of that facility took place on July 2.
Sabra expects to use the sales proceeds to repay borrowings under its revolving credit facility, according to the release.
The sale of the Genesis facilities continues Sabra’s so-called “Genesis Exodus,” which recently saw the sale of 12 properties operated by the skilled nursing giant. Rick Matros, the CEO of the Irvine, Calif.-based real estate investment trust (REIT), said in the 2017 fourth-quarter earnings conference call that Genesis’ large-scale model does not work.
The sale of the Signature facility comes after the skilled nursing operator reached a lease restructuring agreement with both Sabra and the REIT Omega Healthcare Investors, Inc. (NYSE: OHI) earlier this year.
Genesis’ stock closed on Monday at $2.07, down 13%, or $0.31. Sabra’s shares closed at $22.32, down 1.5%, or $0.34.
Written by Maggie Flynn