April 13, 2018
Genesis HealthCare, a Pennsylvania-headquartered post-acute care provider, entered into a definitive agreement to sell 23 skilled nursing facilities in Texas to Regency REIT LLC, which is headquartered in New York City. The $181-million portfolio consists of 22 buildings owned by Genesis, and one that is leased. Upon the July 2018 closing, Genesis will exit Texas’ inpatient sector.
Genesis HealthCare has been divesting non-strategic healthcare operations and real estate for the past couple of years in attempts to pay down debt. The healthcare services provider announced in August 2017 that it would continue its selling strategy well into 2018.
The Texas transaction will help the company reduce approximately $97 million in debt, and get rid of $1.8 million of annual cash lease expense. “We are constantly reviewing our portfolio, with an emphasis on divesting underperforming assets or assets in non-strategic markets,” said Genesis CEO George V. Hager, Jr.
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