MINOT, N.D. — IRET (NYSE: IRET), a REIT based in Minot, has sold a portfolio of eight seniors housing communities totaling 313 units, all located in Idaho. The current tenants, all affiliates of Edgewood Senior Living, purchased the properties for $43.9 million.
After retiring mortgage debt and paying other closing costs, IRET will receive net cash proceeds of approximately $31.2 million.
Additionally, IRET intends to redeem all 1.2 million outstanding shares of its 8.25 percent Series A Cumulative Redeemable Preferred Shares (NYSE: IRET PR). The moves are part of what the company calls its “strategic transformation.”
“We continue to simplify our business and strengthen our financial position, and today’s announcement marks another meaningful step forward in our efforts,” says Tim Mihalick, the company’s CEO. “We are committed to our goal of becoming the premier multifamily company in the Midwest, which we believe will result in a stronger company, with more predictable cash flows that will support attractive long-term returns for our shareholders.”
As of July 31, IRET owned interests in 146 properties, consisting of 100 multifamily properties totaling 13,012 units, and 47 commercial properties, including 31 healthcare properties, containing a total of approximately 2.8 million square feet of leasable space.