HEALTH CARE REIT, INC. COMPLETES $2.4 BILLION ACQUISITION OF GENESIS HEALTHCARE REAL ESTATE ASSETS4/4/2011
Toledo, Ohio — April 4, 2011
Health Care REIT, Inc. (NYSE:HCN) announced today that it has completed the $2.4 billion acquisition of substantially all of the real estate assets of privately-owned Genesis HealthCare (Genesis), which was previously announced on February 28, 2011. The long-term, triple-net lease, including 147 post-acute, skilled nursing and assisted living facilities in 11 Northeast and Mid-Atlantic states, closed on April 1st.
"Health Care REIT's acquisition and leaseback of Genesis HealthCare's assets is yet another example of the successful execution of our company's strategy to develop long-term partnerships with best-in-class operators with a track record of quality care, profitability and growth. The Genesis and Health Care REIT teams worked efficiently to close this transaction on an accelerated timeline," says George L. Chapman, Health Care REIT's Chairman, Chief Executive Officer and President. "These high quality assets are located in attractive metropolitan markets with high barriers to entry, significant hospital system referral relationships and high replacement costs. We expect Health Care REIT's acquisition and leaseback of Genesis HealthCare assets will be highly accretive to HCN's earnings."
Genesis is a leading provider of short-term post-acute, rehabilitation, assisted living and long-term care services. Genesis has successfully expanded its clinical capabilities in recent years. Given its strong clinical capabilities, Genesis facilities are well positioned as the lowest cost post-acute inpatient setting. Genesis is positioned for superior growth and has recently invested over $405 million in capital improvements to meet the increasing demand for post-acute care services.
For additional information regarding the Genesis transaction, visit the Featured Partners page of HCN's website at http://www.hcreit.com/featuredpartners/Genesis.
About Health Care REIT, Inc.
Health Care REIT, Inc., an S&P 500 company with headquarters in Toledo, Ohio, is a real estate investment trust that invests across the full spectrum of senior housing and health care real estate. The company also provides an extensive array of property management and development services. As of December 31, 2010, the company's broadly diversified portfolio consisted of 683 properties in 41 states. More information is available on the company's website at www.hcreit.com.
About Genesis HealthCare
Genesis HealthCare Corporation is one of the nation's largest post-acute and skilled nursing care providers with over 200 locations in 13 eastern states. Genesis also supplies contract rehabilitation therapy to over 1,100 healthcare providers in 28 states and the District of Columbia. More information is available on the company's website at www.genesishcc.com.
This document may contain "forward-looking" statements as defined in the Private Securities Litigation Reform Act of 1995. When the company uses words such as "may," "will," "intend," "should," "believe," "expect," "anticipate," "project," "estimate" or similar expressions, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties. The company's expected results may not be achieved, and actual results may differ materially from expectations. This may be a result of various factors, including, but not limited to, competition within the health care and senior housing industries; negative developments in the operating results or financial condition of the operator/tenant, including, but not limited to, its ability to pay rent; operator/tenant bankruptcies and insolvencies; governmental regulations affecting Medicare and Medicaid reimbursement rates and operational requirements; liability or contract claims by or against the operator/tenant; unanticipated difficulties and/or expenditures relating to the integration of multi-property acquisitions; issues facing the health care industry, including compliance with, and changes to, regulations and payment policies, responding to government investigations and punitive settlements and the operator/tenant's difficulties in cost-effectively obtaining and maintaining adequate liability and other insurance; and changes in rules or practices governing the company's financial reporting. Additional factors are discussed in the company's Annual Report on Form 10-K and in its other reports filed from time to time with the Securities and Exchange Commission. The company assumes no obligation to update or revise any forward-looking statements or to update the reasons why actual results could differ from those projected in any forward-looking statements.