Company Enters into New Master Lease for 18
Properties
Care Capital Properties, Inc. (NYSE: CCP) (“CCP”) today
announced that it has expanded its relationship with Signature
HealthCARE, LLC (“Signature”). Signature acquired the operations of
18 skilled nursing facilities owned by CCP from Elmcroft Senior
Living, Inc. (“Elmcroft”). The 18 properties, all but one of which
is located in Kentucky, added approximately 1,700 beds to
Signature’s network, establishing Signature as the leading
post-acute provider in Kentucky with 41 facilities across the
state. In connection with the acquisition, CCP funded a total of $9
million to Signature, of which $8 million was added to the lease
basis at an 8.5 percent return and $1 million was a four-year fully
amortizing loan. CCP entered into a new master lease with Signature
to operate the properties at the existing Elmcroft rent plus the
additional rent described above.
“We are pleased to expand our relationship and to position our
assets for the future with Signature, an excellent operating
partner,” CCP Chief Executive Officer Raymond J. Lewis said. “This
transaction exemplifies our strategy of proactively working with
our customers to help them grow and succeed in the evolving
healthcare landscape.”
“The acquisition of the Elmcroft operations enables Signature to
expand its delivery of high-quality post-acute services throughout
the state of Kentucky,” Signature President and Chief Executive
Officer Joe Steier said. “We are pleased to expand our relationship
with CCP and excited about the opportunity to bring our skilled
nursing operational focus, culture and ancillary services business
to these already strong assets.”
Signature is the nation’s seventh largest skilled nursing
provider. It is a vertically integrated skilled nursing,
rehabilitation and health care company that operates 133 skilled
nursing facilities in 11 states and has approximately 24,000
employees. With this transaction, CCP leases a total of 49
properties in nine states to Signature.
Care Capital Properties, Inc. is a healthcare real estate
investment trust with a diversified portfolio of triple-net leased
properties focused on the post-acute sector. Its skilled management
team is fully invested in delivering excellent returns by forging
strong relationships with shareholders, operators and employees.
More information about Care Capital Properties, Inc. can be found
at: www.carecapitalproperties.com.
This press release includes forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. All statements regarding CCP’s or its tenants’ or
borrowers’ expected future financial condition, results of
operations, cash flows, funds from operations, dividends and
dividend plans, financing opportunities and plans, capital markets
transactions, business strategy, budgets, projected costs,
operating metrics, capital expenditures, competitive positions,
acquisitions, investment opportunities, dispositions, growth
opportunities, expected lease income, continued qualification as a
real estate investment trust (“REIT”), plans and objectives of
management for future operations and statements that include words
such as “anticipate,” “if,” “believe,” “plan,” “estimate,”
“expect,” “intend,” “may,” “could,” “should,” “will” and other
similar expressions are forward-looking statements. These
forward-looking statements are inherently uncertain, and actual
results may differ from CCP’s expectations. CCP does not undertake
a duty to update these forward-looking statements, which speak only
as of the date on which they are made.
CCP’s actual future results and trends may differ materially
from expectations depending on a variety of factors discussed in
its filings with the Securities and Exchange Commission. These
factors include without limitation: (a) the ability and willingness
of CCP’s tenants, borrowers and other third parties to satisfy
their obligations under their respective contractual arrangements
with CCP, including, in some cases, their obligations to indemnify,
defend and hold harmless CCP from and against various claims,
litigation and liabilities; (b) the ability of CCP’s tenants and
borrowers to maintain the financial strength and liquidity
necessary to satisfy their respective obligations and liabilities
to third parties, including without limitation obligations under
their existing credit facilities and other indebtedness; (c) CCP’s
success in implementing its business strategy and its ability to
identify, underwrite, finance, consummate and integrate
diversifying acquisitions and investments; (d) macroeconomic
conditions such as a disruption of or lack of access to the capital
markets, changes in the debt rating on U.S. government securities,
default or delay in payment by the United States of its
obligations, and changes in the federal or state budgets resulting
in the reduction or nonpayment of Medicare or Medicaid
reimbursement rates; (e) the nature and extent of future
competition, including new construction in the markets in which
CCP’s properties are located; (f) the extent of future or pending
healthcare reform and regulation, including cost containment
measures and changes in reimbursement policies, procedures and
rates; (g) increases in CCP’s borrowing costs as a result of
changes in interest rates and other factors; (h) the ability of
CCP’s tenants to comply with laws, rules and regulations in the
operation of CCP’s properties, to deliver high-quality services, to
attract and retain qualified personnel and to attract residents and
patients; (i) changes in general economic conditions or economic
conditions in the markets in which CCP may, from time to time,
compete, and the effect of those changes on CCP’s revenues,
earnings and capital sources; (j) CCP’s ability to pay down,
refinance, restructure or extend its indebtedness as it becomes
due; (k) CCP’s ability and willingness to maintain its
qualification as a REIT in light of economic, market, legal, tax
and other considerations; (l) final determination of CCP’s taxable
net income for the year ending December 31, 2015; (m) the ability
and willingness of CCP’s tenants to renew their leases upon
expiration, CCP’s ability to reposition its properties on the same
or better terms in the event of nonrenewal or in the event CCP
exercises its right to replace an existing tenant, and obligations,
including indemnification obligations, CCP may incur in connection
with the replacement of an existing tenant; (n) year-over-year
changes in the Consumer Price Index and the effect of those changes
on the rent escalators contained in CCP’s leases and on CCP’s
earnings; (o) CCP’s ability and the ability of its tenants to
obtain and maintain adequate property, liability and other
insurance from reputable, financially stable providers; (p) the
impact of increased operating costs and uninsured professional
liability claims on CCP’s or its tenants’ liquidity, financial
condition and results of operations, and the ability of CCP and its
tenants to accurately estimate the magnitude of those claims; (q)
risks associated with CCP’s investments in joint ventures and
unconsolidated entities, including its lack of sole decision-making
authority and its reliance on its joint venture partners’ financial
condition; (r) consolidation in the healthcare industry resulting
in a change of control of, or a competitor’s investment in, one or
more of CCP’s tenants or borrowers, and significant changes in the
senior management of CCP’s tenants or borrowers; (s) the impact of
litigation or any financial, accounting, legal or regulatory issues
that may affect CCP or its tenants or borrowers; and (t) changes in
accounting principles, or their application or interpretation, and
CCP’s ability to make estimates and the assumptions underlying the
estimates, which could have an effect on CCP’s earnings. Many of
these factors are beyond the control of CCP and its management.
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version on businesswire.com: http://www.businesswire.com/news/home/20151204005371/en/
Care Capital Properties, Inc.Lori B. WittmanExecutive Vice
President and Chief Financial
Officerlwittman@carecapitalproperties.com312.881.4702
Care Capital Properties, Inc. (delisted) (NYSE:CCP)
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