New Leases Reduce Prior Lease Obligations by $440 Million through January 2032Genesis will continue to operate the facilities KENNETT SQUARE, Pa., Nov. 02, 2016 (GLOBE NEWSWIRE) -- Genesis HealthCare (Genesis or the Company) (NYSE:GEN), one of the nation's largest providers of post-acute care, today announced that it has entered into a lease with a new landlord for 64 of its skilled nursing facilities previously leased from Welltower Inc. (Welltower). The Company also plans to enter into a lease with another landlord for an additional 28 facilities currently leased from Welltower. On November 1, 2016, Welltower sold the real estate of the 64 facilities to Second Spring Healthcare Investments (Second Spring), a joint venture formed by affiliates of Lindsay Goldberg LLC, a private investment firm, and affiliates of Omega Healthcare Investors, Inc., a real estate investment trust (REIT). Genesis will continue to operate the facilities pursuant to its new lease with affiliates of Second Spring effective November 1, 2016 and there will be no change in the operations of these facilities. The 64 facilities had been included in the Company's master lease with Welltower and were historically subject to 3.4% annual escalators, which were scheduled to decrease to 2.9% annual escalators effective April 1, 2017. Under the new lease with Second Spring, initial annual rent for the 64 properties is reduced approximately 5% to $103.9 million and annual escalators will decrease to 1.0% after year 1, 1.5% after year 2, and 2.0% thereafter. The more favorable lease terms are expected to reduce Genesis' cumulative rent obligations through January 2032 by $297 million. As part of the transaction, Genesis issued a note totaling $51.2 million to Welltower, maturing in October 2020. On November 2, 2016, in a separate transaction, Welltower announced that that it had entered into an agreement to sell the real estate of 28 additional facilities to a joint venture among Welltower, Cindat Capital Management Ltd., and Union Life Insurance Co., Ltd. Similar to the new lease with Second Spring, as part of the Welltower sale, Genesis expects to enter into a lease at closing of the sale, which is expected in the fourth quarter of 2016. Genesis will continue to operate the facilities pursuant to its new lease and there will be no change in the operations of these facilities.