Sat. Feb 4th, 2023
By Dave Sebastian

Welltower Inc. said it has agreed to buy a portfolio of 86 senior housing properties owned by Holiday Retirement for $1.58 billion.

The deal represents a discount to estimated replacement cost in excess of 30%, the company said Monday. The portfolio includes 80 nearly identical independent living and six combination properties, the company added.

The transaction could increase Welltower’s normalized funds from operations during the first year after the deal closes by about 10 cents a share, Welltower said. The portfolio to be acquired could bring net operating income growth in future quarters and in coming years as occupancy growth accelerates, the company added.

The portfolio’s occupancy has increased more than 2.7% since bottoming in March, Welltower said.

Atria Senior Living will assume operations of the properties and keep Holiday’s in-place senior management and staff, Welltower said. Atria also said it has agreed to acquire Holiday.

Welltower and Atria said they expect to have $1.5 million to $2 million in capital expenditures per community and implement larger-scale refurbishments and redevelopments with 10 properties that have been designated for expansion.

Welltower expects the deal to close in the third quarter.

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