Welltower to Acquire Amica Senior Lifestyles Portfolio in Canada

Welltower, Inc. WELL recently announced that it is under contract to acquire the Canada-based senior housing portfolio of Amica Senior Lifestyles from Ontario Teachers' Pension Plan for an aggregate consideration of C$4.6 billion. The deal, subject to customary regulatory approvals, is expected to close in the fourth quarter of 2025.Located within highly affluent neighborhoods in Toronto, Vancouver and Victoria, the portfolio consists of 38 ultra-luxury seniors housing communities and nine entitled development parcels, which include a 31-property in-place portfolio valued at C$3.2 billion. This Toledo, OH-based real estate investment trust (REIT), with the transaction, is slated to gain a portfolio of 31 in-place properties, which includes 24 stabilized communities and seven recently opened properties still in lease up.Welltower intends to purchase seven properties that are currently under construction and that have been planned and curated throughout development schedules stretching nearly a decade. After obtaining certificates of occupancy, which should happen in stages between 2025 and 2027, the under-construction properties will be purchased.As part of the deal, Welltower also announced the formation of a long-term strategic partnership with Amica. WELL will acquire a minority interest in Amica’s management company, with the Amica management team holding on to a majority ownership stake.Welltower and Amica have enabled the path for a significant future expansion of the latter's ultra-luxury, high-acuity offerings in their targeted neighborhoods of Toronto, Vancouver and Victoria. This collaboration is further strengthened by Amica's continued management of the properties under a highly aligned RIDEA 5.0 contract.At closing of the in-place portfolio and development parcels, Welltower will assume $560 million of Canada Mortgage and Housing Corporation insured debt, with an average interest rate of 3.6% and a four-year weighted average maturity.About AmicaAmica Senior Lifestyles is a preeminent seniors housing owner and operator of category-defining luxury communities. The Amica communities provide a continuum of care, including independent living, assisted living and memory care. It has an unparalleled track record of substantial value creation through exceptional operational and development acumen.WELL’s Management CommentaryPer Shankh Mitra, CEO of Welltower, "These communities will join the top echelons of the Welltower portfolio, reflected by their location within the most desirable neighborhoods in all of Canada and ultra-luxe amenities and finishes. Against a backdrop of rapidly growing demand and limited new supply, we expect the portfolio to drive outsized revenue and cash flow growth in the coming years."Mr. Mitra also stated that "Amica Senior Lifestyles Co-founder, Robert Ezer, and CEO, Jens Cermak, share our vision on delivering a killer value proposition for residents through the offering of premium hospitality and care and providing a dynamic environment for site level employees to grow and thrive."WELL: In a NutshellWelltower is poised to benefit from its diversified portfolio of healthcare real estate assets in the key markets of the United States, Canada and the United Kingdom. An aging population and an expected rise in senior citizens’ healthcare expenditure are likely to aid its Seniors Housing Operating portfolio’s growth. The outpatient medical segment is expected to benefit from favorable outpatient visit trends.Restructuring initiatives have enabled the company to attract top-class operators, facilitating it to improve the quality of its cash flows.Over the past six months, shares of this Zacks Rank #2 (Buy) company have gained 26.3%, outperforming the industry’s decline of 2.5%. Image Source: Zacks Investment Research Other Stocks to ConsiderSome other top-ranked stocks from the broader REIT sector are SL Green Realty SLG and Sabra Healthcare REIT SBRA, each carrying a Zacks Rank of #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The Zacks Consensus Estimate for SL Green’s 2025 FFO per share is pegged at $5.52, which indicates year-over-year growth of 9.7%.The Zacks Consensus Estimate for Sabra’s full-year FFO per share is $1.49, which indicates an increase of 3.5% from the year-ago period.Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SL Green Realty Corporation (SLG): Free Stock Analysis Report Sabra Healthcare REIT, Inc. (SBRA): Free Stock Analysis Report Welltower Inc. (WELL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks