Summit Healthcare REIT on Thursday announced the appointment of a new CEO and a new COO.
President Kent Eikanas will now serve as CEO of the Lake Forest, Calif.-based real estate investment trust (REIT), which has holdings in both senior housing and skilled nursing. Eikanas had held the title of president since September 2012, and had also previously served as Summit’s chief operating officer.
Chief financial officer Elizabeth Pagliarini will add chief operating officer to her title, having served as CFO since the fall of 2014.
“These promotions reflect the significant contributions that both of these individuals have made in producing positive results for our company over the last five years.” Summit board chairman Steve Roush said in a statement announcing the move.
The REIT’s presence in the senior housing and care space has expanded rapidly over the last five years, when it pivoted from a more industrial portfolio. Its total portfolio numbers 57 properties across 14 states.
The majority of those communities are held in joint ventures. As of June 30, 2019, the REIT held 100% ownership of three properties and a 95.3% interest in four properties in a consolidated joint venture with Cornerstone Healthcare Partners LLC. Of those seven properties, four are SNFs, three are assisted living, and one is assisted living with memory care.
Summit’s stake in JVs ranges from 10% to 35%.
The JV portfolios have grown to more than $426 million in total asset value, Summit reported in its recent Q2 2019 earnings filing. Net operating income for that portfolio reached $17.3 million for the first half of this year, compared to $14.2 million for the same period in 2018.
NOI was down year-over-year for the wholly-owned and majority-owned properties, going from $4.0 million in 2018 to $3.2 million this year. The dip is due mainly to the disposition of four properties in North Carolina in February, Summit stated.
Pagliarini sat down with SHN’s sister site, Skilled Nursing News, back in April to discuss her strategy when evaluating deals for the REIT, which she said rests heavily on the strength of the operating partners.
Alex Spanko contributed reporting for this article.