Welltower posts flat third quarter revenue

funding

US based real estate investment trust (REIT) Welltower has reported a 1.1% rise in group revenue to US$1.09bn (£828m) in the three months to the end of September.

Net income for the group dropped sharply to US$89m from US$355m in the year earlier quarter.

CEO Tom DeRosa said: “We are pleased to again report a very strong quarter, headlined by our senior housing operating performance.

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“Our superior real estate, concentrated in major metro markets, and our deep collaborative efforts with our operators continues to lead to exceptional results.”

Real estate investments for the REIT amounted to US$26.4bn, down slightly from US$27.5bn in the prior year.

In the UK, Welltower invested £13m on a 64-bed property with Avery Healthcare and £18m on a Sunrise Senior Living property.

The REIT also initiated a relationship with Encore Care Homes through the £13m purchase of a 60-bed private pay focused property in Southampton in a deal supported by property consultant JLL.

The deal involves an exclusive option for Welltower to acquire £250m worth of Encore’s developments through a partnership with owner, Quantum Group.

Julian Shaffer, Managing Director of Quantum, said: “The partnership perfectly aligns our organisation’s belief that by placing customer needs at the heart of our businesses, we can create life-affirming places to take care of the generations which hitherto cared for us, whilst delivering long-term economic value and growth.”

Jason Myers of Welltower added: “With JLL’s support, we were able to establish a partnership with Quantum that will yield strategic benefits to both businesses for years to come. JLL’s perspective, clarity and flexibility at critical moments of the process significantly contributed to getting the transaction to completion successfully.”

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