CHICAGO, Nov. 4, 2013 /PRNewswire/ -- Aviv REIT, Inc. ("Aviv" or the "Company") (NYSE: AVIV) announced today it has acquired five post-acute and long-term care skilled nursing facilities ("SNFs") located in Ohio and Arkansas in two separate transactions for $42.2 million. Four of the properties are triple-net leased to new Aviv operator Peregrine Health Services ("Peregrine") and one property is triple-net leased to existing Aviv operator Concepts Management ("Concepts"). Concepts is an operator of SNFs with 4 facilities in Arkansas. The triple-net lease with Concepts has an initial cash yield of 11.0%, an initial lease term of 10 years and annual compounded escalators based on CPI. The transaction was sourced by Concepts and brought to Aviv due to the Company's long-term relationship with Concepts.
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Aviv's business development team cultivated a relationship with Peregrine over the past two years which resulted in this sale leaseback transaction. The triple-net lease has an initial cash yield of 9.9%, an initial lease term of 10 years and fixed annual escalators. Peregrine is an operator of SNFs with 16 facilities in Ohio, with over 25 years of experience operating SNFs. Aviv plans to pursue additional growth opportunities with Peregrine. We are experts at sourcing and negotiating these sale leaseback transactions. These transactions are strategic because of the alignment of interest created by the seller staying in place as the operator under a long term lease.
"We have already had an active fourth quarter closing over $90 million of acquisitions, we expect to continue to close transactions through the balance of the fourth quarter and we have continued to grow with attractive and accretive acquisitions," said Craig M. Bernfield, Chairman and Chief Executive Officer of Aviv. "We are extremely pleased with the successful execution of our recent $250 million unsecured bond offering, which has positioned us to execute on the high-quality opportunities in our pipeline. We are confident that we will continue to execute our growth strategy by focusing on quality operators, real estate and markets. We still believe that there is a significant and attractive long-term consolidation opportunity with favorable industry dynamics including SNFs being the low-cost provider of long-term and post-acute care. We believe in our competitive advantage because our management team has demonstrated its capability of sourcing and executing attractive investments over a long period of time. Aviv is committed to investing in post-acute and long-term care SNFs and looks forward to a busy 2014 and beyond."
About Aviv
Aviv REIT, Inc., based in Chicago, is a real estate investment trust that specializes in owning post-acute and long-term care skilled nursing facilities and other healthcare properties. Aviv is one of the largest owners of SNFs in the United States and has been in the business for over 30 years. The Company currently owns 274 properties that are triple-net leased to 37 operators in 29 states.
For more information about the Company, please visit our website at www.avivreit.com or contact:
David J. Smith, Managing Director, Investor Relations & Capital Markets at 312-855-0930.
Forward-Looking Statements
This press release may include forward-looking statements. Forward-looking statements can be identified by the use of words such as "may," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "intends," "continue" or similar terminology. These forward-looking statements are made based on our current expectations and beliefs concerning future events affecting us and are subject to uncertainties and factors relating to our operations and business environment, all of which are difficult to predict and many of which are beyond our control, that could cause our actual results to differ materially from those matters expressed in or implied by these forward-looking statements. These uncertainties include, but are not limited to, uncertainties relating to the operations of our tenants, including those relating to reimbursement by government and other third-party payors, compliance with regulatory requirements and occupancy levels, regulatory, reimbursement and other changes in the healthcare industry, the performance and reputation of our tenants, our ability to successfully engage in strategic acquisitions and investments, the effect of general market, economic and political conditions, the availability and cost of capital, changes in tax laws and regulations affecting REITs and our ability to maintain our status as a REIT. Important factors that could cause actual results to differ materially from our expectations include those disclosed under "Risk Factors" and elsewhere in filings made by Aviv REIT, Inc. and Aviv Healthcare Properties Limited Partnership with the Securities and Exchange Commission.
SOURCE Aviv REIT, Inc.
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