IRVINE, Calif. — Sabra Health Care REIT (NASDAQ: SBRA) has acquired 21 skilled nursing facilities in a sale-leaseback transaction with an undisclosed West Coast operator for $378 million.
The Irvine-based, publicly traded REIT plans to buy the operator’s three remaining facilities before the end of the year for $52 million, for an expected total purchase price of $430 million.
The acquisitions are one of several mega-deals for Sabra this year. In August, the company completed its acquisition of skilled nursing owner and former Ventas spinoff Care Capital Properties. Just last week, Sabra also announced it had agreed to buy minority interest in a 183-property portfolio of Enlivant-operated seniors housing communities for $371 million. Sabra plans to eventually acquire 100 percent interest in the portfolio.
Sabra was the 21st largest owner of seniors housing in the U.S. with 74 communities and 7,624 units as of June 1, according to the American Seniors Housing Association’s 2017 tally. However, that ranking was before any of these three major acquisitions.
Concurrent with the new sale-leaseback transaction, Sabra also announced that it has begun the process of marketing for sale the remaining 43 facilities that the company leases to Genesis Healthcare Inc. Sabra predicts the sales will occur in 2018 for aggregate sales proceeds of $425 million to $475 million. The proposed disposition, which the company is calling the “Genesis Exodus Plan,” is in addition to the ongoing sales of the 33 Genesis facilities that were previously announced.
The massive shift in Sabra’s portfolio is part of the company’s 2018 plan, which it is calling Sabra 3.0. The goal is to have more scale and diversification within the company’s portfolio as far as continuum of care, operator and geography.
“The combined announcements of the Enlivant joint ventures and the skilled nursing portfolio acquisition, along with the Genesis Exodus Plan, repositions the company well beyond the CCP merger,” says Rick Matros, CEO of Sabra.
Sabra’s stock price closed at $20.92 per share on Tuesday, Sept. 26, down from $24.32 one year ago.