Summit Healthcare REIT sells 8 properties in Georgia, Q3 rev. $183.9mln.

• Summit Healthcare REIT disposes of 8 properties in Georgia. • Unaudited pro forma condensed consolidated financial statements. • Balance sheet as of September 30, 2024 reflects disposal. • Statements of operations for 9 months and year ended December 31, 2023.

Summit Healthcare REIT, a leading healthcare real estate investment trust (REIT), recently announced the sale of eight properties in Georgia, marking another significant step in the company's strategic plan [1]. The REIT, which specializes in acquiring and managing healthcare properties, disposed of the properties without the assistance of an outside brokerage firm.

The eight properties, which consist of skilled nursing facilities and assisted living facilities, were acquired by Summit Healthcare REIT in December 2021 for approximately $11.4 million [1]. However, due to changing market conditions and the impact of the COVID-19 pandemic on the healthcare industry, the REIT recorded an impairment charge of $11.4 million on these properties in its 2023 financial statements [1].

The sale of these properties, which are not named in the press release, generated significant proceeds for Summit Healthcare REIT. The REIT has not disclosed the exact sale price, but it did mention that the proceeds reflect a significant increase in the company's net asset value [1].

According to the REIT's most recent financial statements, as of June 30, 2024, its total assets were $204.12 million, down from $210.25 million in the previous year [1]. However, the sale of the Georgia properties is expected to boost the company's net asset value significantly, as the REIT continues to focus on maximizing value for its shareholders.

The sale of the Georgia properties is not the only recent positive development for Summit Healthcare REIT. In May 2024, the REIT announced the sale of one of its joint venture portfolios, the Applewood Retirement Community, for $10.6 million to a behavioral health operator [1]. The sale yielded a gain of approximately $7.7 million for the joint venture.

Despite the challenges of 2023, Summit Healthcare REIT remains optimistic about the future. "I remain optimistic about the future and our ability to deliver value to our shareholders," said Elizabeth Pagliarini, the REIT's chief executive officer [1].

References:
[1] The DIWire. (2024, May 14). Summit Healthcare REIT sells skilled nursing facility portfolio for 50 IRR. Retrieved from https://thediwire.com/summit-healthcare-reit-sells-skilled-nursing-facility-portfolio-for-50-irr/