Welltower, Cogir Grow Relationship with $885 Million CAD, 12-Community Transaction

Welltower (NYSE: WELL) announced Monday it has expanded its relationship with Cogir after closing a 12-property, $885 million CAD transaction.

The properties are located in Quebec, with Cogir continuing to manage them in a 95% to 5% joint venture agreement. The deal was closed subsequent to the end of the third quarter of 2023, according to Welltower.

Through the transaction, Welltower will be acquiring Cogir’s Jazz brand. The communities are eight years old, on average, and boast margins of more than 40%, according to a business update issued by Welltower on Monday.

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In August, the Toledo, Ohio-based real estate investment trust announced plans to expand its relationship with Cogir in Canada with a new management platform. The launch of the new operating platform followed a late-2022 favorable ruling from the Internal Revenue Service (IRS) regarding the company’s independent living (IL) portfolio.

Cogir is a Canada-based company that has a U.S. arm led by industry veteran David Eskenazy. Cogir USA grew significantly through its acquisition of Cadence Living in 2022.

In its business updated on Monday, Welltower reported normalized funds from operations (FFO) attributable to common stockholders of $0.92 per share, along with year-over-year, same-store net operating income (NOI) growth of 14.1%, driven by growth in the company’s Seniors Housing Operation (SHO) portfolio of 26.1%.

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Same-store revenue in the SHO portfolio for Welltower increased 9.8% in the third quarter, driven by average occupancy growth of 220 basis points (bps) and revenue per occupied room (RevPOR) growth of 6.9%. The REIT also completed $1.4 billion of pro rata acquisitions and loan funding in the third quarter, having completed $3 billion in gross investments this year as of Monday. 

Buoyed by the strong reporting in the third quarter, Welltower also revised its full year 2023 net income to common stockholders outlook to a range of $0.91 to $0.95, up from previously adjusted guidance of $0.75 to $0.84. Full-year guidance was revised to $3.59 to $3.63 per diluted share earlier this year up from previous guidance of $3.51 to $3.60 per diluted share.

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