Health Care REIT CEO: Sunrise is Best Portfolio Ever Made Available

Publish Date:

Sunday, June 9, 2013

Category:

News Organization:

Senior Housing News

Source URL:

Health Care REIT (NYSE:HCN) has been busy making big investments in 2013, already amounting to more than $5 billion during the year.

The company announced in May that it was making a $1.01 billion investment in Canadian senior housing operator Revera’s $1.35 billion portfolio using a RIDEA structure on the deal.

In January, the company closed on the $3.4 billion acquisition of Sunrise Senior Living, which is expected to increase to $4.3 billion in July after additional joint venture interests have been acquired.

“By the time we close up the final $700 million, we will have the best portfolio ever made available to any of the health care REITs,” said George Chapman, chief executive officer and chairman of Health Care REIT, during REIT Week in Chicago.

After completing more than $5 billion in transactions in 2013, the company is likely to shift its focus away from major external acquisitions and toward investments with existing operating partners.

About 36% of HCN’s portfolio is held through RIDEA joint ventures with operators such as Brandywine, Belmont Village, and Silverado. The company sees these relationships as a distinct advantage toward acquiring new properties going forward.

“Once a RIDEA transaction is completed, it probably makes sense to keep coming back to us, to fit in that same pattern,” said Chapman. “As we slow down on acquisitions, we know that we have a pipeline of new investments and transactions from our longstanding partners.”

The company has made more than $1 billion in investments in each of the last 13 quarters, with existing relationships representing 84% of the investments during the last four quarters. “People can talk about relationships, but ours are working,” said Chapman.

Going forward, HCN says it expects to see more consolidation in the industry to provide better infrastructure and support better operators.

“We think it’s almost inevitable that operators will have to come together, and that there will be M&A activity,” he said. “[By doing this they will have] more opportunity to compete in the brave new world.”

Sunrise Senior Living Tweets

  • In the latest issue of Provider magazine, our Chief Clinical Officer sheds light on end-of-life care during COVID-1… https://t.co/vayTeas10y6 hours 53 min ago
  • Research indicates that regular exercise might not only reduce memory loss, but also help keep memory intact. Here… https://t.co/vxFrgL9mWe22 hours 39 min ago
  • To celebrate National PenPal Day, Sunrise at Fox Hills added fun pens to their Suite Stop carts so residents could… https://t.co/zrqOG13LUw3 days 3 min ago
  • A smile and a laugh can go a long way, even when it’s virtual. To make sure residents can see their loved ones, we’… https://t.co/Ra6ci6Y8M34 days 7 hours ago
  • In addition to the infection control protocols in place at our communities, our team members have been asked to fol… https://t.co/aCmWN2jdWZ5 days 7 hours ago