Omega Healthcare Investors (NYSE: OHI) on Tuesday announced the formal completion of a $735 million deal to acquire 58 skilled nursing facilities — with Consulate Health Care confirmed the primary operator involved in the transaction.
First announced back in August, the deal closed on October 31, and saw the real estate investment trust (REIT) acquire a total of 60 new properties, with 58 SNFs and a pair of assisted living facilities.
The Maitland, Fla.-based Consulate operates 57 out of the 60 facilities, with a separate operator for the last three buildings, Matthew Gourmand, Omega’s senior VP of investor relations, confirmed to SNN.
The Hunt Valley, Md.-based Omega referred to the properties as the “Encore portfolio” in its third-quarter earnings release, where it disclosed that the deal had been finalized; that refers to the company that had previously held the facilities, according to Gourmand.
“The facilities with Consulate as the operator are new, well-liked, and highly rated,” Gourmand said. “We are working with them in good faith.”
Consulate also confirmed the deal.
“We are thrilled with this opportunity to continue our partnership with Omega,” Consulate vice president of corporate communications Jennifer Trapp told SNN via e-mail.
The majority — or 37 properties — of the 6,590-bed portfolio is located in Florida, with eight buildings in North Carolina, six in Mississippi, four in Louisiana, two in Idaho, and one each in Kentucky, Missouri, and Montana.
The $735 million price tag included about $346 million in cash, and the assumption of $389 million in loans backed by the U.S. Department of Housing and Urban Development.
Omega expects to collect $64 million in 2020 annual cash rent from the two operators.
Executives from Omega will discuss the company’s third-quarter 2019 earnings — which saw the REIT boost net income to $142.9 million from $59.1 million over the same span in 2018 — on a conference call Wednesday morning.
Maggie Flynn contributed reporting to this story.