Welltower shedding former ProMedica holdings as it winnows more SNF assets

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Welltower is divesting its holdings of former ProMedica skilled nursing facilities, having already sold about half of these assets through 12 different transactions for $1.3 billion. The REIT achieved a 25% unlevered internal rate of return on these sales and plans to further decrease its skilled nursing concentration from 15% to 12% while increasing senior housing. Welltower’s strategy involves acquiring SNF assets with turnaround potential, partnering with strong regional operators, stabilizing performance, and then exiting through sales, often utilizing HUD financing.

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