Two major investors of Sabra Health Care REIT Inc. are coming out against its proposed deal to acquire another health-care REIT, saying Sabra is overpaying for skilled nursing assets that are in bad shape. Hedge funds Eminence Capital LLC and Hudson Bay Capital Management LP said they plan to vote against Sabra’s proposal to buy another real-estate investment trust, Care Capital Properties Inc., noting that Care Capital’s portfolio of 305 skilled nursing facilities is struggling and will likely continue to worsen. ...
Two of Sabra Health Care REIT's significant investors have declared opposition to a proposal to acquire a second healthcare REIT, claiming that Sabra currently pays too much for inadequate nursing assets. Hudson Bay Capital Management and Eminence Capital will not vote in favour of the deal to buy Care Capital Properties. The trust’s skilled nursing facilities are experiencing difficulties that are only likely to continue, according to the investors. The merger would create a $7.4bn firm, elevating it to investment-grade and offering greater access to debt markets.