ATLANTA, June 25, 2015 /PRNewswire/ -- AdCare Health
Systems, Inc. (NYSE MKT: ADK) (NYSE MKT: ADK.PRA), a
self-managed healthcare real estate investment company that invests
primarily in real estate purposed for senior living and long-term
healthcare, today announced continued progress in its strategic
transition to a property holding and leasing company.
Transition Update
The Company received approval from HUD with respect to four
facilities in Ohio and one
facility in Georgia and expects to
complete the operations transfers of these facilities in the third
quarter of 2015. The four Ohio
facilities are subject to lease agreements previously executed with
affiliates of Beacon Management and the Georgia facility is subject to a lease
agreement previously executed with an affiliate of C-Ross
Management. In the aggregate, the four Ohio facilities, plus an additional facility
in Ohio which did not require HUD
approval, and the Georgia
facility, represent $4.1 million in
initial year cash rent.
As expected, the Company completed the operations transfer of
one skilled nursing facility in North
Carolina, effective June 1,
2015, pursuant to a lease agreement previously signed with a
wholly-owned subsidiary of Symmetry Healthcare Management,
representing approximately $650,000
in initial year cash rent.
"Our commitment to completing the strategic transition of our
company, along with timely communication of our progress, continues
with the announcement of HUD approval on five facilities and the
transfer of operations of one facility," stated Bill McBride, AdCare's Chairman and Chief
Executive Officer. "We expect to transfer operations on
substantially all of the remaining facilities in the third
quarter."
Since the Board approved the strategic plan to transition the
Company's business from an owner and operator of healthcare
facilities to a healthcare property holding and leasing company,
the Company has entered into agreements for 37 of its 40 healthcare
facilities. Of these 37 healthcare facilities:
- Twenty-six facilities have transferred operations to
third-party operators or are under a management contract with an
indefinite term;
- Of the remaining 11 facilities pending transfer:
- Of the five facilities in Ohio, the Company has received HUD approval on
four, and one facility does not require HUD approval. The Company
expects to transfer operations to a third-party operator for these
five facilities on August 1.
- Of the two facilities in Georgia, the Company has received HUD approval
on one, and expects to transfer operations for this facility to a
third-party operator, on July 1.
Transfer of the second Georgia
facility is subject to HUD approval.
- The Company expects to transition two facilities in
Oklahoma to a third-party operator
during the third quarter of 2015, subject to receipt of required
licenses;
- The Company expects to close the sale of one facility in
Oklahoma in the third quarter,
subject to certain termination provisions and closing conditions;
and
- The Company expects the sale of one Arkansas facility to close on July 1.
The remaining two facilities in Georgia and one facility in Arkansas are pending final disposition.
About AdCare Health Systems
AdCare Health Systems, Inc. (NYSE MKT: ADK) (NYSE
MKT: ADK.PRA) is a self-managed healthcare real estate
investment company that invests primarily in real estate purposed
for senior living and long-term healthcare through facility lease
and sub-lease transactions. The Company currently owns, leases or
manages for third parties 40 facilities, primarily in the
Southeast. For more information about AdCare, visit
www.adcarehealth.com.
Important Cautions Regarding Forward-Looking
Statements
Statements contained in this press release that are not
historical facts may be forward-looking statements within the
meaning of federal law. Such statements can be identified by the
use of forward-looking terminology, such as "believes," "expects,"
"plans," "intends," "anticipates" and variations of such words or
similar expressions, but their absence does not mean that the
statement is not forward-looking. Statements in this press release
that are forward-looking include, among other things, statements
regarding the strategic plan to transition the Company to a
healthcare facilities holding and leasing company, statements
regarding the expected dates for transitioning facility operations
to third-party operators and statements regarding the sale of the
Oklahoma facility. Such
forward-looking statements reflect management's beliefs and
assumptions and are based upon information currently available to
management and involve known and unknown risks, results,
performance or achievements of AdCare, which may differ materially
from those expressed or implied in such statements. Such factors
are identified in the public filings made by AdCare with the
Securities and Exchange Commission, including the Company's Annual
Report on Form 10-K for the year ended December 31, 2014. There is no assurance that
such factors or other factors will not affect the accuracy of such
forward-looking statements. Except where required by law, AdCare
undertakes no obligation to revise or update any forward-looking
statements to reflect events or circumstances after the date of
this press release.
In addition, each facility mentioned in this press release is
operated by a separate, wholly owned, independent operating
subsidiary that has its own management, employees and assets.
References to the consolidated company and its assets and
activities, as well as the use of terms such as "we," "us," "our,"
and similar verbiage, is not meant to imply that AdCare Health
Systems, Inc. has direct operating assets, employees or revenue or
that any of the facilities, the home health business or other
related businesses are operated by the same entity.
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SOURCE AdCare Health Systems, Inc.