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Welltower Transitioning 12 Communities to Operating Partners Oakmont, Cogir, Kisco 

Welltower (NYSE: WELL) is transitioning a 12-property senior living portfolio to operating partners Oakmont Senior Living, Kisco Senior Living and Cogir Management USA.

The portfolio spans 2,000 assisted living units in the Los Angeles, San Francisco and Seattle metro areas, and includes more than half of the communities Welltower purchased from Vintage Senior Living for $1.15 billion in 2016.

Oakmont Senior Living is slated to manage 10 of the communities, while Cogir and Kisco will each manage one community apiece in markets where they already have a local presence, according to a July 13 business update from the Toledo, Ohio-based real estate investment trust (REIT).

Nine of the dozen properties were transitioned to new operators in July, and management expects to transfer the remaining three in the third quarter of 2022.

Welltower management said the move was aimed at improving net operating income (NOI), which is a particular focus for the company’s leaders this year.

This isn’t the first time Welltower has moved properties included in its Vintage purchase portfolio into the purview of other operators. The REIT in 2021 transitioned six similar communities in the Los Angeles and Bay Area markets to Oakmont, a transition the company noted has resulted in higher occupancy and resident rates.

“Based on each operator’s performance in the subject markets, our data analytics’ platform predicts Oakmont could drive a 20% improvement in bottom-line results through both higher occupancy and lower expenses,” Welltower noted in its July 13 update.

The REIT’s most recent portfolio transition comes two months after Welltower deepened its relationship with Oakmont, Cogir and Treplus Communities in a flurry of deals.

Welltower also noted that revenue per occupied room (RevPOR) growth for its Senior Housing Operating (SHO) portfolio exceeded expectations in the second quarter despite an uptick of Covid-19 cases that led to increased use of agency labor in June, driving up expenses. The transition also inflated the REIT’s expenses in June, which Welltower noted was not assumed in the company’s guidance for the second quarter of 2022.

On the occupancy front, Welltower noted that its U.S. and UK senior housing portfolios saw spot occupancy gains of approximately 40 and 90 basis points, respectively, over the past two weeks.

The post Welltower Transitioning 12 Communities to Operating Partners Oakmont, Cogir, Kisco  appeared first on Senior Housing News.

Source: For the full article please visit Senior Housing News

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