Maryland based real estate investment trust Sabra Health Care, has acquired a portfolio of 21 independent living facilities from Holiday Acquisition Holdings.
The REIT paid $550 million in cash for the portfolio, which is made up of 2,850 units. It also ensured that the transition of ownership would proceed smoothly by signing a 15-year master lease agreement with Holiday AL Holdings L.P.
The properties have an occupancy level of 90.5 per cent and are located across 15 states. Six of the states represent new territories for Sabra and the new holdings range in size from 91-252 units and in age from 4-29 years.
Not only has Sabra’s geographic presence expanded, but the addition of the 21 independent living assets decreased the REIT’s exposure to skilled nursing and transitional care facilities.
These types of assets previously made up the vast majority of the REIT’s holdings, numbering 100 of its 130-property portfolio.
The Holiday portfolio also reduces the concentration of Sabra’s earned revenues from its leading tenant Genesis Healthcare from 46.8 per cent to 28.1 per cent.
Along with closing this latest acquisition, Sabra also expects to complete $100 million in sale/leaseback deals over the next two months.
According to a recent statement “(The) investments far exceed our prior expectations of $195 million in the second half of 2014 and should allay investor fears of slowing transaction pace.”
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