Health Care REIT To Sell 7 Entrance Fee, 1 Rental Communities For $435 Mln

(RTTNews) - Health Care REIT, Inc. (HCN) Monday said it has entered into a definitive agreement to sell seven entrance fee communities and one rental community for $435 million.

The purchase price equates to a 5.6 percent cash yield on sale. It is expected to generate a gain of about $95 million.

Health Care REIT said the disposition is in addition to its most recently disclosed disposition guidance of $625 million for 2014 and is expected to be completed by December 31. Upon completion, the company will own one entrance fee community.

"This opportunistic sale of a non-strategic entrance fee portfolio is a great outcome for our shareholders. It better positions our portfolio to deliver consistent, resilient returns in all market cycles, and the sale price should allow us to reinvest the proceeds accretively," Tom DeRosa, HCN's CEO, said.