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Irvine-based Sabra Health Care REIT Inc. and Care Capital Properties Inc. in Chicago announced completion of their all-stock merger despite shareholder backlash.

Each outstanding share of Care Capital common stock is converted into 1.123 shares of Sabra common stock. The combined entity owns a 564-property portfolio of skilled nursing and senior housing facilities.

The purchase had encountered some shareholder backlash because Sabra’s portfolio will have greater exposure to skilled nursing facilities—an asset class to which several REITs have reduced exposure in light of changing reimbursement models.

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Care Capital was spun out of Ventas Inc. in 2015 as a pure-play skilled nursing REIT.

“I should note that [rating agency Standard & Poor’s] has put out a release stating we are investment grade, Fitch [Ratings] should follow,” said Sabra Chief Executive Rick Matros.

The company had earlier issued a statement in support of the transaction, saying the merger provides benefits including value creation and dividend growth, scale increase, a stronger balance sheet, and tenant base diversification and that those benefits, including achieving investment grade, will increase the company’s competitive advantages.

Matros said the company will release more details on integration in the following month.

With Care Capital, Sabra’s skilled nursing exposure increases from 57% to 73%. Matros said Sabra will buy more senior living assets with the long-term goal of bringing skilled nursing and senior living asset concentration to approximately 50-50.

Sabra currently trades at $21 per share for a $1.51 billion market cap.