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Sabra Completes $230.3 Million Of Acute Care Hospital Investments; Commits To Additional $66.3 Million

IRVINE, Calif., Oct. 22, 2013 (GLOBE NEWSWIRE) -- Sabra Health Care REIT, Inc. ("Sabra," the "Company" or "we") (Nasdaq:SBRA) announced today the completion of three acute care hospital investments sourced by the Neal Richards Group ("NRG"), a developer of premier, physician-owned hospitals under the Forest Park Medical Center brand. These investments create a material shift in our portfolio composition (proforma as of June 30, 2013):

  • Our exposure to Genesis decreases from 60.8% to 52.2% of annualized revenues.
  • Our exposure to Skilled Nursing/Post Acute facilities decreases from 82.1% to 70.6%.
  • Our exposure to Medicare and Medicaid reimbursement decreases from 68.4% to 58.3%.

Forest Park Medical Center - Fort Worth Construction Loan

On September 30, 2013, we entered into an agreement to provide up to $66.8 million of construction financing to FPMC Fort Worth Realty Partners, LP ("Forest Park - Fort Worth") for the construction of a 54-bed acute care hospital with 12 operating rooms, a medical office building and associated parking structure located in Fort Worth, Texas (the "Forest Park - Fort Worth Construction Mortgage Loan"), of which $0.5 million was funded at closing. Construction of the facility is expected to be completed by mid-2014. The Forest Park - Fort Worth Construction Mortgage Loan has a three-year term and bears interest at a fixed rate of 7.25% per annum, with an option to extend the term for a fourth year with a fixed rate increasing to 8% per annum. In addition, we have an option to purchase the acute care hospital and associated parking structure starting 12 months after the facility receives a certificate of occupancy through and until the maturity date of the loan, subject to certain limited rights of the borrower. The purchase price under the purchase option agreement will be calculated by dividing the contractual rent due under the existing lease for the facility over the twelve months following closing by the greater of (i) 8.75% and (ii) the sum of (x) the then current 10-year Treasury rate and (y) 525 basis points. Upon exercise of the purchase option on the facility, we would expect to assume the existing long-term triple net lease on the facility. The annualized GAAP interest income will be $4.8 million when the loan is fully funded.

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