Genesis Sells 15 Skilled Nursing Facilities as Texas Exit Continues

Genesis HealthCare (NYSE: GEN) this week sold 15 skilled nursing facilities in Texas and handed off the operations of a 16th leased facility in the state.

The transaction, announced late Tuesday, leaves seven Genesis SNFs in the state, with the company planning to sell all seven during the fourth quarter of this year.

Previously, the Kennett Square, Pa.-based operator had exited the operations of an additional leased facility in the state, according to the press release issued Tuesday.

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Genesis announced earlier this year that it would exit skilled nursing the Lone Star State altogether. The buyer was identified at the time as Regency REIT, LLC, a New York City-based real estate investment trust (REIT).

Calls to several numbers listed for Regency REIT and its officers were not returned as of press time, and a spokesperson for Genesis declined to confirm whether or not Regency was the buyer. A LinkedIn page for Regency Integrated Healthcare Services describes the company as a subsidiary of Capital Senior Care Ventures, a joint venture between BlueMountain Capital Management and Capital Funding Group.

For all 24 Texas facilities, aggregate annual revenue and EBITDA was about $175 million and $7 million, respectively. Genesis estimated in a press release announcing the deal that the transactions would slash the provider’s debt by about $94 million.

“We are constantly reviewing our portfolio with an emphasis on divesting underperforming assets or assets in non-strategic markets,” Genesis CEO George V. Hager, Jr. said in a statement. “This deleveraging transaction will allow for additional focus on our core markets and will strengthen our overall portfolio.”

Genesis has more than 400 SNFs and senior living communities in 30 states. Its subsidiaries provide rehabilitation and respiratory therapy to more than 1,600 health care providers in 46 states, the District of Columbia, and China.

Written by Maggie Flynn

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