IRVINE, Calif., June 4, 2014 (GLOBE NEWSWIRE) -- Sabra Health Care REIT, Inc. ("Sabra," the "Company" or "we") (Nasdaq:SBRA) (Nasdaq:SBRAP) announced today that it has amended its lease agreement with Texas Regional Medical Center ("TRMC") in connection with the acquisition of a controlling interest in TRMC by a subsidiary of Tenet Healthcare Corporation ("Tenet"). The amended lease agreement has an initial term of 15.5 years with the option for TRMC to extend the lease for four additional terms of five years each and provides for an annual rent escalator equal to the lesser of 2.5% and the actual CPI increase as of the date of determination, not to be less than 1%. This results in annual lease revenues, determined in accordance with GAAP, of $5.5 million. The amended lease agreement also provides TRMC with a fair market value-based purchase option subject to a $62.7 million floor beginning in November 2024. TRMC's obligations under the amended lease agreement are partially guaranteed (subject to a 51% floor) by Tenet.
Sabra Amends Lease Agreement With Texas Regional Medical Center In Connection With Investment In Hospital By Tenet Healthcare Corporation
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