Welltower and StoryPoint Senior Living Announce Deepening of Strategic Partnership
Welltower Inc. (NYSE: WELL) is expanding its partnership with StoryPoint Senior Living by purchasing three senior living portfolios, totaling 2,787 units across Michigan, Ohio, and Tennessee, for approximately $548 million. This strategic move, anticipated to enhance occupancy and cash flow growth, comes as StoryPoint operates under a RIDEA 3.0 contract. The transaction is set to yield high-single-digit unlevered internal rates of return (IRRs). Welltower's investments since October 2020 will now reach $6.8 billion, with YTD transactions totaling $1.2 billion.
- Expansion of partnership aims to enhance occupancy and cash flow growth.
- Total investment of approximately $548 million expected to generate high-single-digit unlevered IRRs.
- Welltower's total pro-rata investments will reach $6.8 billion since October 2020.
- Current average occupancy of the properties stands at only 63%.
- Communities were significantly impacted by COVID-related operational challenges.
TOLEDO, Ohio, March 6, 2022 /PRNewswire/ -- Welltower Inc. (NYSE: WELL) or the "Company" today announced that it plans to expand its strategic partnership with StoryPoint Senior Living ("StoryPoint"), a preeminent senior living operator based in Brighton, Michigan. The Company has agreed to purchase three distinct senior living portfolios, subject to customary closing conditions, where StoryPoint will be the operating partner under an aligned RIDEA 3.0 contract, significantly expanding its pre-existing local footprint in these markets.
The portfolios comprise 2,787 units across 33 communities throughout Michigan, Ohio, and Tennessee. Assisted living and memory care account for approximately three-quarters of the units, and independent living represent the remainder. The total investment will be approximately
With a median vintage of 2016, the communities were largely in lease-up at the onset of the pandemic and, similar to the rest of the industry, were significantly impacted by COVID-related operational challenges. With
"The past four years have been a journey, with the last two being our most challenging to date. We want to have an impact on people's lives; our employees, residents, and families," said Dan Hughes, StoryPoint's CEO. "We set goals around this, then a pandemic struck – and in times like that, you need great partners to achieve success. We navigated the convoluted and demanding times without straying from our mission; that does not happen without Shankh and his team. It began with alignment and is succeeding because of trust. Shankh's position has always been – tell me what you are trying to accomplish; together, we can figure it out. Our equation for our successful partnership has been simple: alignment and trust."
"These transactions represent a further evolution in our relationship with StoryPoint and build on our two companies' success from prior investments," said Shankh Mitra, Welltower's CEO and CIO. "In fact, since our highly accretive portfolio sale in 2019, we have regrown our StoryPoint relationship from two operating communities to 74 following the consummation of the announced transactions, demonstrating the ability of great operators to gain market share in the current environment. We pivoted to offense in Fall 2020 starting with Dan and his team; we are extremely proud that the transactions are allowing us to further serve these markets with one of our best operating partners."
The execution of these transactions, which are expected to generate high-single-digit unlevered IRRs, will bring the Company's total pro-rata gross investments to
Forward-Looking Statement
This press release may contain "forward-looking" statements as defined in the Private Securities Litigation Reform Act of 1995. When Welltower 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 Welltower's actual results to differ materially from Welltower's expectations discussed in the forward-looking statements. This may be a result of various factors, including, but not limited to, those factors discussed in Welltower's reports filed from time to time with the SEC. Welltower 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.
About StoryPoint Senior Living
With over 40 years of experience developing and operating senior housing communities, StoryPoint Senior Living is the premier choice for seniors and families looking for an individualized, purposeful and engaging senior living setting. StoryPoint, along with its sister communities, operates across Illinois, Indiana, Iowa, Kentucky, Michigan, Ohio, Tennessee and Wisconsin. Each of our 100 owned and/or operated locations offers unique senior living options with select locations offering independent living, enhanced living, assisted living, memory care and skilled nursing options. To learn more about StoryPoint, please visit StoryPoint.com.
About Welltower
Welltower® Inc. (NYSE: WELL), an S&P 500 company headquartered in Toledo, Ohio, is driving the transformation of health care infrastructure. The Company invests with leading seniors housing operators, post-acute providers and health systems to fund the real estate and infrastructure needed to scale innovative care delivery models and improve people's wellness and overall health care experience. Welltower, a real estate investment trust ("REIT"), owns interests in properties concentrated in major, high-growth markets in the United States, Canada and the United Kingdom, consisting of seniors housing, post-acute communities and outpatient medical properties. More information is available at www.welltower.com. We routinely post important information on our website at welltower.com in the "Investors" section, including corporate and investor presentations and financial information. We intend to use our website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Such disclosures will be included on our website under the heading "Investors." Accordingly, investors should monitor such portion of the company's website in addition to following our press releases, public conference calls and filings with the Securities and Exchange Commission. The information on our website is not incorporated by reference in this press release, and our web address is included as an inactive textual reference only.
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