IRVINE, Calif., Sept. 28, 2015 (GLOBE NEWSWIRE) -- Sabra Health Care REIT, Inc. (NASDAQ:SBRA) (NASDAQ:SBRAP) announced today two investments: the acquisition of a portfolio of five senior housing facilities located in Illinois, and the acquisition of a portfolio of four senior housing facilities located in Oregon and Washington. The transactions were funded with available cash and proceeds from our revolving credit facility.
Life's Journey Senior Living Portfolio
On September 1, 2015, we acquired five senior housing facilities with 149 primarily memory care beds/units (collectively, the "Life's Journey Senior Living Portfolio") located in Illinois for $19.7 million. Concurrently with the purchase, we entered into a triple-net master lease agreement with Life's Journey Senior Living for the portfolio. The lease has an initial term of 10 years with two 5-year renewal options and provides for an annual rent escalator equal to the greater of (i) the Consumer Price Index and (ii) 3.0%, resulting in annual lease revenues, determined in accordance with GAAP, of $1.7 million and an initial yield on cash rent of 7.5%.
Radiant Senior Living Portfolio
On September 17, 2015, we acquired four senior housing facilities with 196 assisted living units and 18 independent living units (collectively, the "Radiant Senior Living Portfolio") located in Oregon and Washington for $65.0 million. Concurrently with the purchase, we entered into a triple-net master lease agreement with Radiant Senior Living. The lease has an initial term of 10 years with two 5-year renewal options and provides for an annual rent escalator of 3.0%, resulting in annual lease revenues, determined in accordance with GAAP, of $5.0 million and an initial yield on cash rent of 6.75%.
Commenting on these investments, Rick Matros, CEO and Chairman, said, "These acquisitions represent new markets for Sabra and align us with two new operating partners: Radiant Senior Living and Life's Journey Senior Living. In both cases, we have been working for some time to find properties with these operators that make sense. It represents the time that our team invests in developing relationships with operators. Some opportunities occur quickly, others may take several years but we take pride in being patient and nurturing relationships with operators we want to grow with. This brings our year to date investments to $443 million with an average weighted yield of 7.7%."
Sabra Health Care REIT, Inc., a Maryland corporation, operates as a self-administered, self-managed real estate investment trust (a "REIT") that, through its subsidiaries, owns and invests in real estate serving the healthcare industry. Sabra leases properties to tenants and operators throughout the United States and Canada.
FORWARD-LOOKING STATEMENTS SAFE HARBOR
This release contains "forward-looking" statements as defined in the Private Securities Litigation Reform Act of 1995. These statements may be identified, without limitation, by the use of "expects," "believes," "intends," "should" or comparable terms or the negative thereof. Forward-looking statements in this release include all statements regarding our expectations concerning the Life's Journey Senior Living Portfolio and Radiant Senior Living Portfolio acquisitions.
Our actual results may differ materially from those projected or contemplated by our forward-looking statements as a result of various factors, including, among others, the following: our dependence on Genesis Healthcare, Inc. and certain wholly owned subsidiaries of Holiday AL Holdings LP until we are able to further diversify our portfolio; our dependence on the operating success of our tenants; the dependence of our tenants on reimbursement from governmental and other third-party payors; the significant amount of and our ability to service our indebtedness; covenants in our debt agreements that may restrict our ability to make investments, incur additional indebtedness and refinance indebtedness on favorable terms; increases in market interest rates; changes in foreign currency exchange rates ; our ability to raise capital through equity and debt financings; the relatively illiquid nature of real estate investments; competitive conditions in our industry; the loss of key management personnel or other employees; the impact of litigation and rising insurance costs on the business of our tenants; uninsured or underinsured losses affecting our properties and the possibility of environmental compliance costs and liabilities; our ability to maintain our status as a REIT; compliance with REIT requirements and certain tax matters related to our status as a REIT; and other factors discussed from time to time in our news releases, public statements and/or filings with the Securities and Exchange Commission (the "SEC"), especially the "Risk Factors" sections of our Annual and Quarterly Reports on Forms 10-K and 10-Q. Forward-looking statements made in this press release are not guarantees of future performance, events or results, and you should not place undue reliance on these forward-looking statements, which speak only as of the date hereof. We assume no, and hereby disclaim any, obligation to update any of the foregoing or any other forward-looking statements as a result of new information or new or future developments, except as otherwise required by law.
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Source:Sabra Health Care REIT, Inc.