Sabra Health Care REIT and Care Capital Properties have announced they are tying the knot to form a new real estate investment trust worth an estimated $7.4 billion. The combined company will be based in Irvine, California and hold more than 550 investments across 43 states and Canada.
The stock-swap merger was fueled by the desire to expand diversification, especially now that Sabra has parted ways with some of its Genesis Healthcare investments and Care Capital has closed its behavioral health hospitals, notes a Sabra release detailing the terms of the merger.
“The transaction adds to both REITs’ stable asset bases, and positions the combined company to create a balanced portfolio in the assisted living, independent living and skilled nursing facility asset classes,” the merger announcement states. “The more extensive asset base gives the combined company additional flexibility to recycle capital and actively manage the portfolio without sacrificing earnings growth.”
Sabra’s portfolio already includes Genesis Healthcare, Holiday Assisted Living and Tenet Health Care operators.