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SOURCE Aviv REIT, Inc.
CHICAGO, May 2, 2014 /PRNewswire/ -- Aviv REIT, Inc. (NYSE: AVIV) announced today it has acquired eight post-acute and long-term care skilled nursing facilities ("SNFs") in California and Texas, in three separate transactions for $70.7 million. These acquisitions are follow-on investments with existing operator relationships and the opportunities were brought exclusively to Aviv by the operators. These triple-net leases have a blended initial cash yield of 9.7%, annual escalators and lease terms of ten years.
Four of the SNFs, located in Texas, were purchased for $53.7 million and are triple-net leased to existing Aviv operator Fundamental Long Term Care ("Fundamental"), an operator of 76 SNFs in 9 states, at an initial cash yield of 9.5%. Three of the SNFs, located in California, were purchased for $13.4 million and are triple-net leased to existing Aviv operator Providence Group ("Providence"), an operator of 12 SNFs in Kentucky and California, at an initial cash yield of 10.25%. The remaining SNF, located in Texas, was purchased for $3.6 million and is triple-net leased to existing Aviv operator Trinity Healthcare, LLC ("Trinity"), an operator of five SNFs in Texas, at an initial cash yield of 10.75%.
"We have already completed $181 million of accretive acquisitions in 2014 and these acquisitions have further enhanced our operator and geographic diversification, consistent with our overall strategy," said Craig M. Bernfield, Chairman and Chief Executive Officer of Aviv. "Fundamental, Providence and Trinity have successful track records with us and we expect to continue to build our relationships with them. We have a strong pipeline of identified acquisitions and we are confident about our growth prospects for the balance of 2014."
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 303 properties that are triple-net leased to 39 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.
The information presented herein includes forward-looking statements. Examples of forward-looking statements include all statements regarding our future operator relationships, business strategy, projected growth opportunities and potential acquisitions. 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 statements. These factors include, among others: uncertainties relating to the operations of our operators; our ability to successfully engage in strategic acquisitions and investments; competition in the acquisition and ownership of healthcare properties; the availability and cost of capital; the amount and yield of any additional investments; and other factors disclosed under "Risk Factors" and elsewhere in filings made by us with the Securities and Exchange Commission. Except as required by law, we do not undertake any responsibility to release publicly any revisions to these forward-looking statements to take into account events or circumstances that occur after the date as of which such statements are made or to update you on the occurrence of any unanticipated events which may cause actual results to differ from those expressed or implied by the forward-looking statements contained herein.
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