In connection with Select Income REITs (NYSE:SIR) $3.1B purchase of Cole Corporate Income Trust, the company is offloading the healthcare properties in CCIT's portfolio (23) to Senior Housing Properties Trust (NYSE:SNH) for $539M.
The properties to be purchased by SNH are 100% occupied with average term of 9.5 years. Seventy-two percent of rents are payable by investment grade tenants. The GAAP cap rate is about 6.4%.
After the sale of the healthcare assets to SNH, Select will be adding 64 office and industrial properties to its portfolio. The company expects - following closing of the purchase in early 2015 - to boost its quarterly dividend by $0.02 to $0.50 per share.