Back at Welltower’s investor day in 2018, Thomas DeRosa laid out a growth plan for 2019 and the company has met or exceeded that growth plan year-to-date and is again reported strong results.
According to DeRosa on the firm’s Q3 earnings call, the company made sometimes tough decisions regarding Genesis, Brookdale, health lease and other legacy investments that he says “could best be characterized as last generation real estate, bad capital structures, misaligned operating agreements, misguided private equity investments or frankly simply paying too much for real estate. It was sometimes painful for our shareholders, but this management team took actions that were in our shareholders’ best long-term interest.”
He adds that “While we will never stop optimizing our investment portfolio, the dispositions as well as the acquisitions made in the last three years have significantly de-risked the enterprise. That is why today, our senior housing assets have positive growth, our long-term care assets have strong lease coverage, and our industry-leading MOB portfolio continues to perform and grow through acquisition and development.”
He points out that the company has unique strategy that fundamentally views its health and wellness care delivery real estate as a platform like all successful platforms, this platform is able to deliver another level of value far beyond the value of the real estate.
“This enables synergistic collaborations like CareMore Anthem, which we recently announced, attracts new senior housing operators this year alone like LCB, Balfour, Frontier, Atria, and Clover and has enabled our medical office portfolio to grow by approximately $2 billion this year and the year is not over. As we continue to grow, we have strengthened our balance sheet, so we can continue to drive shareholder value in a measured way.”
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