TOLEDO, Ohio--(BUSINESS WIRE)--Health Care REIT, Inc. (NYSE:HCN) announced today that it has entered into a definitive agreement to sell seven entrance fee communities and one rental community for $435 million. The purchase price equates to a 5.6% cash yield on sale and is expected to generate a gain of approximately $95 million.
“This opportunistic sale of a non-strategic entrance fee portfolio is a great outcome for our shareholders. It better positions our portfolio to deliver consistent, resilient returns in all market cycles, and the sale price should allow us to reinvest the proceeds accretively,” said Tom DeRosa, HCN’s Chief Executive Officer.
The disposition is in addition to HCN’s most recently disclosed 2014 disposition guidance of $625 million and is expected to be completed by December 31, 2014. Upon completion, HCN will own one entrance fee community.
About Health Care REIT, Inc. HCN, an S&P 500 company with headquarters in Toledo, Ohio, is a real estate investment trust that invests across the full spectrum of seniors housing and health care real estate. The company also provides an extensive array of property management and development services. As of September 30, 2014, the company’s broadly diversified portfolio consisted of 1,246 properties in 46 states, the United Kingdom, and Canada. More information is available on the company’s website at www.hcreit.com.
Forward-Looking Statements
This document may contain “forward-looking” statements as defined in the Private Securities Litigation Reform Act of 1995. When the company uses words such as “may,” “will,” “intend,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate” or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the company’s actual results to differ materially from the company’s expectations discussed in the forward-looking statements. This may be a result of various factors, including, but not limited to: the satisfaction of closing conditions to the disposition, including, among other things, the obtainment of certain third-party consents; the parties’ performance of their respective obligations under the disposition agreements; the failure to make the disposition as and when anticipated; unanticipated difficulties and/or expenditures relating to the disposition; the status of the economy; the status of capital markets, including availability and cost of capital; issues facing the health care industry; changes in financing terms; competition within the health care and seniors housing industries; negative developments in the operating results or financial condition of operators/tenants; the company’s ability to transition or sell properties with profitable results; natural disasters and other acts of God affecting the company’s properties; the company's ability to timely reinvest sale proceeds at similar rates to assets sold; operator/tenant bankruptcies or insolvencies; government regulations affecting Medicare and Medicaid reimbursement rates and operational requirements; liability or contract claims by or against operators/tenants; environmental laws affecting the company’s properties; changes in rules or practices governing the company’s financial reporting; the movement of U.S. and foreign currency exchange rates; the company’s ability to maintain its qualification as a REIT; and other risks described in the company’s reports filed from time to time with the Securities and Exchange Commission. Finally, the company undertakes no obligation to update or revise publicly any forward-looking statements, whether because of new information, future events or otherwise, or to update the reasons why actual results could differ from those projected in any forward-looking statements.
