While commercial real estate transactions have been down in 2020 with the uncertainty in the market, Welltower (NYSE: WELL), one of the major three real estate investment trusts (REITs) in the healthcare space, is turning heads with their recent announcement. The REIT has just announced a handful of dispositions that total $1.3 billion. Even for a REIT with a $23.41 billion market cap, that’s a lot of real estate. What will these transactions mean for investors moving forward?
What Welltower is selling
The selling off of these properties began in mid-September, when they sold a senior housing portfolio for $702 million. This portfolio was part of a joint venture with a company that managed the properties. Welltower owned 80% of this joint venture.
This deal definitely wasn’t a fire sale by any means. This sale represented a 5.1% cap rate. This sort of valuation is a good sign for the