TOLEDO, OH—Healthcare REIT Welltower Inc. and the Canada Pension Plan Investment Board said Thursday they had formed a joint venture for what will be CPPIB's first investment in US seniors housing. Simultaneously, Welltower announced fourth-quarter earnings that beat analysts' estimates.
The JV entails a 97.5% interest in six private-pay seniors housing properties in Florida, collectively known as the Aston Gardens portfolio, for which Welltower and CCPIB will pay $555 million to Discovery Senior Living. The 1,930-unit portfolio is located in Tampa, Naples, Venice, Sun City Center and Parkland, FL.
Along with constituting Toronto-based CCPIB's debut in the sector in the US market, the deal also marks Welltower's first deal with Discovery. Headquartered in Bonita Springs, FL, Discovery will continue to own 2.5% of the Aston Gardens portfolio and operate the properties.
Calling the Aston Gardens portfolio “an attractive entry” into US seniors housing, CCPIB's Peter Ballon says the properties are successful “because they offer high-quality accommodations, campus-like communities with resort amenities, in select, sought-after locations.” The portfolio is “well-positioned to benefit from long-term demographic trends,” says Ballon, managing director and head of real estate investments Americas for CCPIB.
Welltower CEO Thomas DeRosa says the Aston Gardens deal, which marks an expansion of his company's relationship with CPPIB, “exemplifies our differentiated platform. As a long-term investor, CPPIB provides a large, global alternative capital source to the public markets that enables us to continue driving the evolution of health care infrastructure.”
The REIT's Q4 results came in ahead of estimates on both revenues and funds from operation. Per-share FFO for the quarter came in at $1.13, beating a Zacks consensus estimate by a penny. Quarterly revenues also came in slightly ahead of the consensus at $1.03 billion, compared to a consensus estimate of $979.4 billion. The revenues also compared favorably to $867.8 million in Q4 of 2014.
TOLEDO, OH—Healthcare REIT
The JV entails a 97.5% interest in six private-pay seniors housing properties in Florida, collectively known as the Aston Gardens portfolio, for which Welltower and CCPIB will pay $555 million to Discovery Senior Living. The 1,930-unit portfolio is located in Tampa, Naples, Venice, Sun City Center and Parkland, FL.
Along with constituting Toronto-based CCPIB's debut in the sector in the US market, the deal also marks Welltower's first deal with Discovery. Headquartered in Bonita Springs, FL, Discovery will continue to own 2.5% of the Aston Gardens portfolio and operate the properties.
Calling the Aston Gardens portfolio “an attractive entry” into US seniors housing, CCPIB's Peter Ballon says the properties are successful “because they offer high-quality accommodations, campus-like communities with resort amenities, in select, sought-after locations.” The portfolio is “well-positioned to benefit from long-term demographic trends,” says Ballon, managing director and head of real estate investments Americas for CCPIB.
Welltower CEO Thomas DeRosa says the Aston Gardens deal, which marks an expansion of his company's relationship with CPPIB, “exemplifies our differentiated platform. As a long-term investor, CPPIB provides a large, global alternative capital source to the public markets that enables us to continue driving the evolution of health care infrastructure.”
The REIT's Q4 results came in ahead of estimates on both revenues and funds from operation. Per-share FFO for the quarter came in at $1.13, beating a Zacks consensus estimate by a penny. Quarterly revenues also came in slightly ahead of the consensus at $1.03 billion, compared to a consensus estimate of $979.4 billion. The revenues also compared favorably to $867.8 million in Q4 of 2014.
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