Welltower Announces $750M Private Offering to Repay Debt, Fund Senior Living Investments

Welltower (NYSE: WELL) is seeking additional capital with which to pay down loans and invest in new senior housing assets.

The Toledo, Ohio-based real estate investment trust (REIT) on Monday announced that its operating company, known as “Welltower OP,” has launched a new $750 million private placement offering. The initial purchasers also have an option to purchase notes worth up to an additional $112.5 million in aggregate.

Welltower plans to use the capital for “general corporate purposes,” including repaying debt and investing in health care, wellness and senior living properties, the company noted in a press release.


The company did not elaborate on the new private placement offering or its plans when reached by Senior Housing News Monday.

Welltower’s stock price fell almost 2% on Monday to land at $104.42 by the time financial markets closed.

Welltower has had an already active investment year, and the company has entered into agreements worth billions of dollars this year alone, according to its latest June 3 business update.


More generally, Welltower believes it can take advantage of macroeconomic uncertainty and dislocation of capital markets, which is “creating opportunities to acquire assets at increasingly attractive bases,” the company noted in the update. The company is taking a “granular approach to capital allocation” and is seeking to acquire assets at deep discounts to replacement cost in regional clusters.

The company has “robust near-term available liquidity (including cash on hand, line of credit capacity, expected loan payoffs and disposition proceeds) [and] can fully fund announced acquisitions,” according to its latest business update.

Meanwhile, Welltower also is changing the makeup of its senior housing operating portfolio (SHOP) in some cases. For example, the company in June transitioned 89 Holiday by Atria communities to new operators.

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