Senior Housing Properties Trust (NYSE: SNH) today
announced it has acquired five (5) senior living properties for $61.5
million. Simultaneously, SNH entered a long term lease arrangement
with Five Star Quality Care, Inc. (AMEX: FVE) for these same
properties.
The rent payable by FVE to SNH for these five communities will be $5,073,750 per year, creating an initial return of 8.25% per annum, plus future rent escalators based upon increases in gross revenues at the facilities. These communities will be added to a combination lease for 104 communities from SNH to FVE which has a current term ending in 2020, plus tenant renewal options thereafter.
The five communities that SNH has acquired have a total of 783 units and are summarily described as follows: -0- Type of Units Private Property IL AL SNF Total Pay --------------------------------------------- San Bernadino, CA IL 131 0 0 131 100% Springfield, IL IL 110 0 0 110 100% Frankfort, KY IL 103 0 0 103 100% Naples, FL AL 0 144 0 144 100% Pompano Beach, FL CCRC 190 45 60 295 70% ------------------------ TOTAL 416 189 60 783
These properties have been purchased free and clear of all mortgage debt. SNH has funded this transaction by drawing under its unsecured revolving bank credit facility.
Senior Housing Properties Trust is a real estate investment trust, or REIT, that owns 193 senior living properties located in 32 states. SNH is headquartered in Newton, Massachusetts.
The rent payable by FVE to SNH for these five communities will be $5,073,750 per year, creating an initial return of 8.25% per annum, plus future rent escalators based upon increases in gross revenues at the facilities. These communities will be added to a combination lease for 104 communities from SNH to FVE which has a current term ending in 2020, plus tenant renewal options thereafter.
The five communities that SNH has acquired have a total of 783 units and are summarily described as follows: -0- Type of Units Private Property IL AL SNF Total Pay --------------------------------------------- San Bernadino, CA IL 131 0 0 131 100% Springfield, IL IL 110 0 0 110 100% Frankfort, KY IL 103 0 0 103 100% Naples, FL AL 0 144 0 144 100% Pompano Beach, FL CCRC 190 45 60 295 70% ------------------------ TOTAL 416 189 60 783
These properties have been purchased free and clear of all mortgage debt. SNH has funded this transaction by drawing under its unsecured revolving bank credit facility.
Senior Housing Properties Trust is a real estate investment trust, or REIT, that owns 193 senior living properties located in 32 states. SNH is headquartered in Newton, Massachusetts.
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