Shares of Equity Residential (NYSE:EQR) ended Friday session in red amid volatile trading. The shares closed down -1.61 points or -2.50% at $62.80 with 3.20 million shares getting traded. Post opening the session at $63.76, the shares hit an intraday low of $62.44 and an intraday high of $64.09 and the price vacillated in this range throughout the day. The company has a market cap of $21.94 billion and the numbers of outstanding shares have been calculated to be 365.56 million shares.
Equity Residential (EQR) on July 27, 2016 reported results for the quarter and six months ended June 30, 2016.
“After five consecutive years of exceptional fundamentals, elevated levels of new supply and slowing growth of higher paying jobs in San Francisco and New York have created headwinds that cause us to reduce our revenue growth expectations to be more in line with long term historical trends,” said David J. Neithercut, Equity Residential’s President and CEO.
Highlights in the Quarter:
- Increased same store revenues 4.2%, which, combined with same store expense growth of 1.7% produced an increase in same store net operating income (NOI) of 5.3%.
- Completed the development of three apartment properties in San Francisco, consisting of 1,355 apartment units, for a total capital cost of approximately $726.9 million.
- Started the development, for delivery in late 2018, of a 222-unit apartment property in Washington, DC, which has an estimated total capital cost of approximately $88.0 million.
- Sold three consolidated apartment properties, consisting of 728 apartment units, for an aggregate sale price of approximately $112.5 million at a weighted average Disposition Yield of 5.7% and generating an Unlevered Internal Rate of Return (Unlevered IRR) of 9.3%.
- Sold the Company’s entire interest in the management contracts and related rights associated with the military housing ventures at Joint Base Lewis McChord in Washington State, for approximately $63.3 million, generating a gain on sale of approximately $52.4 million.
Shares of Welltower Inc (NYSE:HCN) ended Friday session in red amid volatile trading. The shares closed down -3.63 points or -4.69% at $73.75 with 3.19 million shares getting traded. Post opening the session at $76.52, the shares hit an intraday low of $73.51 and an intraday high of $76.81 and the price vacillated in this range throughout the day. The company has a market cap of $24.90 billion and the numbers of outstanding shares have been calculated to be 357.92 million shares.
On August 10, 2016 Sunrise Senior Living has been named operator of Welltower’s senior living community being developed in Midtown Manhattan. The project, in collaboration with international real estate firm Hines, is planned for the northeast corner of 56th Street and Lexington Avenue. Slated for a late 2019 opening, the residential community will promote wellness for its senior residents in need of high-quality assisted living and memory care services.
“We believe Sunrise is an ideal partner for us to work with to revolutionize the concept of senior living and meet the needs of the underserved aging population on the island of Manhattan,” said Thomas DeRosa, CEO, Welltower. “Leveraging Sunrise’s world-class memory care programming and services, this new community will distinctively benefit those with Alzheimer’s and other forms of dementia, including residents in the early stages of memory loss. Further, Sunrise’s approach to care will help ensure all residents receive highly individualized service.”
Sunrise currently serves residents at approximately 30 communities throughout the New York City metro area and has 35 years of experience in the assisted living and memory care industry. Welltower’s portfolio currently includes 72 seniors housing communities in the New York tristate area including properties in New York, New Jersey and Connecticut.
“Throughout the world, Sunrise is known for its premium product, including our innovative programming and personalized approach to care. We are perfectly positioned to provide our services in a location like Midtown Manhattan, complemented by prime access to healthcare facilities, retail, restaurants and cultural institutions,” said Chris Winkle, Chief Executive Officer for Sunrise. “This purpose-built residence will be the first of its kind and will allow seniors to continue to call Manhattan home while receiving the high-quality care they need.”