ATLANTA, Feb. 10, 2016 /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 that the operations of its nine facilities in Arkansas will be operated by affiliates of Skyline Healthcare, LLC effective March 1, 2016, pending licensure.
"Effective March 1, we are welcoming a new tenant, Skyline Healthcare, as the operator of our nine healthcare facilities located throughout Arkansas," commented Bill McBride, AdCare's Chairman and Chief Executive Officer. "Skyline Healthcare is a well-established, well-capitalized operator in the state of Arkansas, as well as a number of other states across the eastern United States, and is known for their outstanding nursing staff and high caliber delivery of subacute and long-term care. Their level of care exceeds industry standards and state requirements across the board achieving the Centers for Medicaid and Medicare Services ("CMS") five-star quality rating."
"We continuously look for opportunities to improve our healthcare real estate portfolio, including working with tenants to ensure our mutual success, while making adjustments to our tenant profile and lease terms as circumstances necessitate," added Mr. McBride. "In the case of these nine Arkansas facilities, we were able to increase the rental revenue from the properties going forward and significantly improve the credit profile of the overall portfolio."
The master lease agreement, which is subject to licensure and lender consents, includes an initial term of 15 years with two five-year renewal options, monthly rental fees of $450,000 with 2.5% annual rent escalators, a two month cash security deposit and a one-time, short-term option for the leasee to purchase the facilities.
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 38 facilities. 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. 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 AdCare'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.
SOURCE AdCare Health Systems, Inc.