Welltower and Integra Health to Form Joint Venture for Senior Care Assets

Trending News ☀️

Welltower ($NYSE:WELL) Inc. and Integra Health Management LLC today announced that they have entered into a definitive agreement to form a joint venture that will own and operate a portfolio of skilled nursing assets currently leased by Welltower. The transaction is expected to close in the fourth quarter of 2022 and be slightly accretive to cash flow, earnings, and leverage. Welltower’s 147 Promedica Senior Care skilled nursing assets will be moved into the joint venture. The transaction will result in Welltower’s year-one rent being $167 million, with $142 million being WELL’s share.

Price History

On Monday, Welltower and Integra Health announced that they would be forming a joint venture for senior care assets. This news has been mostly met with positive sentiment from the media. On Monday, WELLTOWER OP stock opened at $61.8 and closed at $61.5, up by 0.8% from last closing price of 61.0. This positive reaction from investors indicates that they believe this joint venture will be beneficial for both companies involved. So far, details about the joint venture have been limited.

However, it is clear that both Welltower and Integra Health believe that it will help them better serve the seniors in their care. This is a positive development for both companies and their shareholders.

VI Analysis

Company’s fundamentals reflect its long term potential, below analysis on WELLTOWER OP are made simple by VI app. According to VI Star Chart WELLTOWER OP is strong in asset, medium in dividend, profitability and weak in growth. WELLTOWER OP is classified as ‘cow’, a type of company that has the track record of paying out consistent and sustainable dividends. what type of investors may interested in such company. WELLTOWER OP has a low health score of 3/10 considering its cashflows and debt, is less likely to safely ride out any crisis without the risk of bankruptcy.

VI Peers

The company operates through three segments: triple-net leased properties, seniors housing operating properties, and outpatient medical properties. As of December 31, 2018, Welltower OP LLC owned 1,338 properties in the United States, Canada, and the United Kingdom. The company’s competitors include Ventas Inc, Physicians Realty Trust, Diversified Healthcare Trust.

– Ventas Inc ($NYSE:VTR)

Ventas Inc is a real estate investment trust that owns and operates seniors housing and healthcare properties in the United States. As of 2022, it has a market cap of 16.23B. The company’s portfolio includes skilled nursing facilities, assisted living facilities, independent living facilities, and senior housing communities.

– Physicians Realty Trust ($NYSE:DOC)

Physicians Realty Trust is a real estate investment trust focused on acquiring, owning and operating medical office buildings across the United States. As of December 31, 2020, the Company’s portfolio consisted of 338 medical office buildings, including 298 wholly-owned properties and 40 unconsolidated joint ventures, totaling approximately 23.1 million square feet of gross leasable area leased to more than 2,800 tenants.

– Diversified Healthcare Trust ($NASDAQ:DHC)

Diversified Healthcare Trust is a healthcare real estate investment trust that owns and leases properties in the United States. As of December 31, 2020, the company’s portfolio consisted of 205 properties in 37 states.

Summary

Investing in Welltower OP can be a great way to get exposure to the senior care industry. The company owns and operates a number of senior care facilities across the United States, and has a strong track record of delivering consistent results. One of the things that makes Welltower OP a attractive investment is its diversified portfolio of assets. The company owns a mix of skilled nursing, assisted living, and memory care facilities, which gives it exposure to different segments of the senior care market. This diversification helps to protect Welltower OP from any one particular segment of the market slowing down. Another thing to like about Welltower OP is its strong financial position.

The company has a strong balance sheet and generates a significant amount of cash flow from operations. This gives Welltower OP the ability to weather any bumps in the road and continue to invest in its portfolio of assets. Overall, Welltower OP is a well-run company with a strong portfolio of assets. It is a great way to get exposure to the senior care industry, and has the potential to generate consistent returns for investors over the long term.