Sabra Health Care REIT Completes $103.3M Sale of 20 Facilities Leased to Genesis

IRVINE, Calif — Sabra Health Care REIT Inc. (NASDAQ: SBRA) has completed the previously announced sale of 20 facilities leased to Genesis Healthcare Inc. in Kentucky, Ohio and Indiana for $103.3 million.

The 20 facilities are part of the original 35 facilities marketed for sale under the previously announced memoranda of understanding with Genesis. Under the terms of the memoranda, Genesis’s annual rent obligations to Irvine-based Sabra will be reduced by $9.3 million as a result of the sale of these facilities.

Sabra expects to use the proceeds from the sale to repay borrowings under its revolving credit facility.

The dispositions are part of the REIT’s “Sabra 3.0” plan to have more scale and diversification within the company’s portfolio as far as continuum of care, operator and geography. Sabra plans to sell its entire portfolio of Genesis-operated skilled nursing facilities for aggregate sales proceeds of $425 million to $475 million.

The buyer was an undisclosed private equity investor that entered into a new lease with Genesis on the properties. Christopher Hyldahl and Ben Firestone of Blueprint Healthcare Real Estate Advisors arranged the transaction.

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