Welltower to Acquire Amica Senior Lifestyles Portfolio in Canada

Core Viewpoint - Welltower, Inc. is set to acquire Amica Senior Lifestyles' senior housing portfolio in Canada for C$4.6 billion, with the deal expected to close in Q4 2025, pending regulatory approvals [1] Company Overview - Welltower is a Toledo, OH-based real estate investment trust (REIT) that will gain a portfolio of 38 ultra-luxury senior housing communities and nine development parcels, including a 31-property in-place portfolio valued at C$3.2 billion [2] - The acquisition includes seven properties currently under construction, which are expected to be purchased after obtaining certificates of occupancy between 2025 and 2027 [3] Strategic Partnership - As part of the acquisition, Welltower will form a long-term strategic partnership with Amica, acquiring a minority interest in Amica's management company while Amica retains majority ownership [4] - This collaboration aims to expand Amica's ultra-luxury, high-acuity offerings in affluent neighborhoods in Toronto, Vancouver, and Victoria, supported by a RIDEA 5.0 contract [5] Financial Details - Upon closing, Welltower will assume C$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 [6] Management Insights - Welltower's CEO, Shankh Mitra, emphasized the portfolio's potential for significant revenue and cash flow growth due to its desirable locations and luxury amenities, amidst growing demand and limited supply [8] - The company is positioned to benefit from an aging population and increasing healthcare expenditures among senior citizens, which will support the growth of its Seniors Housing Operating portfolio [9] Performance Metrics - Over the past six months, Welltower's shares have increased by 26.3%, outperforming the industry, which has seen a decline of 2.5% [11]