|Bid||67.51 x 1100|
|Ask||69.59 x 900|
|Day's Range||67.95 - 69.60|
|52 Week Range||24.27 - 78.82|
|Beta (5Y Monthly)||1.04|
|PE Ratio (TTM)||29.62|
|Earnings Date||May 04, 2021 - May 10, 2021|
|Forward Dividend & Yield||2.44 (3.54%)|
|Ex-Dividend Date||Feb 19, 2021|
|1y Target Est||66.36|
Welltower Inc (NYSE: WELL) is cutting most ties with beleaguered Genesis HealthCare Inc (NYSE: GEN) and plans to terminate leases with Genesis for 51 of its properties and provide an $86 million lease termination fee upon their successful transition. Additionally, Genesis will conditionally receive approximately $170 million in additional debt reductions from Welltower. Hence, Genesis expects to reduce its debt outstanding to Welltower by approximately $256 million and extend the maturity to January 1, 2024. Welltower will also receive equity in Genesis, increasing its stake in Genesis from approximately 6% to about 15%. It has also secured a $50 million debt investment from ReGen Healthcare that would convert into equity representing a 25% stake in the company. ReGen Healthcare also has the option to make an additional debt investment of $25 million exercisable no later than March 31 and to be funded by April 15. As part of the agreement, two Genesis Board Members, John F. DePodesta and Terry Rappuhn have relinquished their current positions. ReGen Healthcare has appointed David Harrington and John Randazzo, effective immediately. Also, Mr. Harrington has been appointed Chairman of the Board. Concurrently, Genesis intends to voluntarily delist from the New York Stock Exchange by March 25. Following the deregistration, the company anticipates that its Common Stock will be quoted on the OTC Pink Open Market. The company expects to file its 2020 Form 10-K by March 16, but it will not distribute a Q4 2020 earnings release or host a conference call. Price Action: GEN shares dropped 35.9% at $0.52, and WELL stock is up 0.48% at $68.95 in market trading hours on the last check Wednesday. See more from BenzingaClick here for options trades from BenzingaNovavax Partners With Poland's Mabion For COVID-19 Vaccine Production: BloombergVir Biotechnology Shares Are Trading Lower As COVID-19 Study VIR-7831 Arm To Stop Enrollment© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
While the future deployment of $745 million of Genesis transaction proceeds offers significant value accretion scope for Welltower (WELL), the sale of properties will result in earnings dilution.
The resurgence of COVID-19 cases in December and January is likely to have resulted in a 220-basis-point occupancy loss for Welltower's (WELL) seniors housing portfolio in February.