Sabra Health Care REIT, Inc. Announces the Sale of 28 Facilities Previously Operated by Senior Care Centers and the Completion of the Holiday Portfolio Conversion
Sale of Senior Care Centers Facilities
On
Seven of the remaining 10 facilities operated by
Holiday Conversion
On
As previously disclosed, the management fee to be paid to Holiday pursuant to the Holiday Management Agreements will be equal to a monthly base fee in the amount of 5% of revenues (the “Base Management Fee”) during the first year of the term of the Holiday Management Agreements. After the first year, the management fee will be equal to the Base Management Fee plus an incentive fee based on the growth in EBITDAR after capital expenditures for the Holiday Communities above agreed upon performance thresholds. The Holiday Management Agreements have a one-year term with one-year extensions at Sabra’s option.
The above transactions were contemplated in our 2019 earnings guidance issued on
Commenting on these and other recent developments,
- the rating agency upgrades to investment grade status, resulting in immediate lowering of borrowing costs,
- doubling our operator base, thereby reducing our exposure to any one tenant to below 10%, and
- doubling our borrowing capacity under our revolving credit facility, which afforded us the ability to enter into the Enlivant JV and make the related investments.
It is also worth noting that we have successfully lowered our SNF concentration to 60%, which is within a couple of percentage points of where we were before the CCP merger; and despite the challenges, the CCP merger was ultimately accretive to normalized pro forma AFFO prior to the merger after taking into account the impact of
About Sabra
Special Note Regarding Forward-Looking Statements
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: (i) our expectations regarding our remaining 10 facilities operated by
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 the operating success of our tenants; operational risks with respect to our
Additional information concerning risks and uncertainties that could affect our business can be found in our filings with the
View source version on businesswire.com: https://www.businesswire.com/news/home/20190401005992/en/
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