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Industry Headlines Sponsor
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NIC Research & Data
Industry Headlines
- February 4, 2010 – Capital Senior Living Corporation (CSU) one of the country’s largest operators of
senior living communities, announced that Midwest Portfolio Holdings, LP (“Midwest I”), a joint venture
in which it holds an 11 percent partnership interest, has entered into an agreement to sell five senior
living communities to Health Care REIT, Inc. (NYSE:HCN - News). Upon closing the transaction, the Company
will lease the communities from HCN. The Company currently manages the five communities in the joint
venture under long-term management agreements. “This transaction will provide immediate benefits to
our shareholders,” commented Lawrence A. Cohen, Chief Executive Officer of the Company. “Along with
a significant increase in our revenues, the lease will be accretive to cash flow and earnings. While
we have been earning management fees on these communities since 2006, we will now be able to consolidate
the results of operations and benefit fully from further improvement in occupancies, margins and rental
rates. These five communities are strategically located in the Midwest portion of the country, where
nearly 50 percent of our operations are located. We are also extremely pleased to enter into a new relationship
with Health Care REIT, Inc., a leading healthcare REIT that invests across the full spectrum of senior
housing and health care real estate.” The properties being leased have approximately 295 units and a
combined resident capacity of nearly 390 and include four assisted living communities in Nebraska and
one assisted living community in Iowa. The Company anticipates receiving proceeds from Midwest I of
approximately $3.0 million, compared to its contribution of approximately $2.7 million. The Company
may receive additional proceeds after the joint venture settles its customary post-closing costs. Annualizing
third quarter 2009 results of operations for the five communities, with financial occupancy of 91 percent,
yields approximately $10.7 million of revenue and $5.1 million of EBITDAR. The initial lease expense
is approximately $4.0 million and is subject to conditional annual escalation provisions. The triple
net operating lease has an initial term of 15 years, with one 15-year renewal option. The Company expects
to begin consolidating the revenues and expenses of the five communities on its income statement, along
with the lease expense, in the first quarter of 2010, subject to lender and regulatory approvals and
other customary closing conditions.
- February 4, 2010 – Omega Healthcare Investors, Inc. (OHI) announced the pricing of a private placement
of $200 million aggregate principal amount of 7½% senior notes due 2020 (the "Notes"). The Notes were
priced at 98.278% of par value (before initial purchasers’ discount). The offering is expected to close
on February 9, 2010 subject to customary closing conditions. The Notes will be unsecured senior obligations
of the Company and will be guaranteed by substantially all of the Company’s current subsidiaries. The
notes will be offered only to qualified institutional buyers under Rule 144A of the Securities Act of
1933, as amended (the "Securities Act"), and to non-U.S. persons outside the United States under Regulation
S of the Securities Act. The Company will use the net proceeds of the offering to repay mortgage debt
assumed in connection with the Company’s recent acquisition of 40 facilities, to repay outstanding indebtedness
under its senior revolving credit facility, for general corporate purposes and to pay related fees and
expenses. The Notes issued in this offering have not been registered under the Securities Act, or any
applicable state laws. Accordingly, the Notes may not be offered or sold in the U.S. or to U.S. persons
absent registration or an applicable exemption from registration under the Securities Act and applicable
state securities laws. This notice does not constitute an offer of any securities for sale. Omega has
agreed to file a registration statement with the Securities and Exchange Commission, pursuant to which
it would exchange the privately placed notes for notes that are registered.
- February 1, 2010 – Sunrise Senior Living Inc. (SRZ) which operates residential facilities said Monday
it will release its vice president of North American operations to cut costs. Daniel Schwartz, who will
leave the company on May 31, will get a severance package based on his employment agreement. The company
has been working with lenders to settle debt claims and in October, worked out a deal with several of
them to avoid filing for bankruptcy protection.
- February 1, 2010 – LTC Properties, Inc. (LTC) announced that in November 2009, the Company purchased
three assisted living properties with a total of 192 units for a price of $13.0 million. Simultaneous
with the purchase, the Company entered into a 12-year triple net lease with a third party operator.
In addition to the purchase price, the Company has committed to provide up to $1.5 million for capital
expenditures mutually agreed upon by the Company and the operator. This commitment includes interest
compounded at the current lease rate on each advance made from each disbursement date until the final
distribution of the commitment. Upon final distribution of the commitment, minimum rent shall increase
by the total commitment plus compounded interest multiplied by the current lease rate. This commitment
expires in May 2011. Also, the Company has committed to provide the operator a credit line not to exceed
$0.3 million at a rate of 9.0%. This credit line matures on November 30, 2011. In January 2010, the
Company purchased a 166-bed skilled nursing property in Texas for a purchase price of $7.9 million and
entered into a 10-year triple net lease with a third party operator that operated the property under
a lease with the seller. Also, the Company paid $0.1 million to the operator as a lease inducement which
will be amortized over the life of the lease. In addition to the purchase price, the Company committed
to provide $0.2 million for capital expenditures mutually agreed upon by the Company and the operator.
The yield for this commitment is included in the lease rate and matures in January 2011. The Company
also announced that it has entered into an agreement to purchase a 120-bed skilled nursing property
in Florida for a purchase price of $9.0 million and will enter into a 12-year triple net lease with
a third party operator. The terms of the seller’s current financing required a 30-day prepayment notice
which was given by seller concurrently upon execution of the purchase agreement. This transaction is
scheduled to close on February 22, 2010. All of these transactions were or will be financed by the use
of funds from the Company’s unsecured line of credit. The Company further announced that the projected
revenues provided from these three transactions for calendar 2010 is $3.0 million under GAAP accounting,
which includes $0.6 million in non-cash straight-line rent.
- February 1, 2010 – National Health Investors, Inc. (NHI) announced it has closed on a $100 million unsecured
revolving credit facility to fund new healthcare real estate investments. The new credit facility, which
was provided by Regions Bank as agent and Pinnacle National Bank as a participating bank, bears interest
at a margin of 250 basis points over LIBOR with a floor of 1% and matures in February 2011. Justin Hutchens,
NHI President and COO stated, “This new credit facility provides NHI the available capacity and flexibility
to make additional high-quality real estate investments in 2010. Additionally, NHI will continue to
review long term capital strategies for its new investments that will maximize returns to our shareholders.”
National Health Investors, Inc. is a healthcare real estate investment trust that specializes in the
financing of healthcare real estate by purchase and leaseback transactions and by mortgage loans. NHI’s
investments involve skilled nursing facilities, assisted living facilities, independent living facilities,
medical office buildings, and an acute care hospital. The common stock of the company trades on the
New York Stock Exchange with the symbol NHI. Additional information about NHI, including its most recent
press releases, may be obtained on NHI's web site at www.nhinvestors.com.
- February 1, 2010 – National Health Investors, Inc. (NHI) completed the previously announced purchase
of six Florida skilled nursing facilities from Care Foundation of America, Inc. (CFA) for a total of
$67 million. The facilities are leased to affiliates of Health Services Management, Inc. for $6.2 million
annually, plus a 3% escalator starting at the beginning of the third lease year. The lease expires in
2014 and the tenant has a 3 year optional renewal term. The facilities total 780 beds and have been
part of NHI’s mortgage loan portfolio for 16 years. The purchase resulted in the dismissal of pending
litigation between NHI and CFA. The earnings before interest, taxes, depreciation, amortization and
rents (EBITDAR) for these facilities for the trailing twelve months ended November 30, 2009 totaled
$10.6 million and provides a lease coverage ratio of 1.71. NHI will fund the purchase with the full
satisfaction of the $23.3 million in principal and interest on a mortgage note due to NHI from CFA,
$29.7 million in cash deposits and $14 million in advances from NHI’s revolving credit facility. National
Health Investors, Inc. is a healthcare real estate investment trust that specializes in the financing
of healthcare real estate by purchase and leaseback transactions and by mortgage loans. NHI’s investments
involve skilled nursing facilities, assisted living facilities, independent living facilities, medical
office buildings, and an acute care hospital. The common stock of the company trades on the New York
Stock Exchange with the symbol NHI. Additional information about NHI, including its most recent press
releases, may be obtained on NHI's web site at www.nhinvestors.com.
SEC Filings:
- 2/5/10, Capital Senior Living Corporation, 8-K, Capital Senior Living Corporation filed a Form 8-K to
announce that Midwest Portfolio Holdings, LP, a joint venture in which the Company holds an 11% partnership
interest, has entered into an agreement to sell five senior living communities to Health Care REIT,
Inc. ("HCN"). Pursuant to the agreement, the Company will lease the communities from HCN upon closing
of the sale transaction.
- 2/4/10, National Health Investors, Inc., 8-K, National Health Investors, Inc. filed a Form 8-K to announce
details for the release of its fourth quarter and year end results for the period ending December 31,
2009 and a conference call.
- 2/4/10, Omega Healthcare Investors, Inc., 8-K, Omega Healthcare Investors, Inc. filed a Form 8-K to
announce its intention to offer $200 million in principal amount of unsecured notes due 2020.
- 2/3/10, National Health Investors, Inc., 8-K, National Health Investors, Inc. filed a Form 8-K to announce
it has closed on a $100 million unsecured revolving credit facility to fund new healthcare real estate
investments.
- 2/2/10, Healthcare Realty Trust, 8-K, Healthcare Realty Trust filed a Form 8-K to announce its dividend
for the fourth quarter ended December 31, 2009.
- 2/1/10, LTC Properties, Inc., 8-K, LTC Properties, Inc. filed a Form 8-K to announce certain acquisitions.
A copy of the press release is furnished as Exhibit 99.1 to this Form 8-K and is incorporated herein
by reference.
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