Imminent Capital Gains With Sabra
Jun. 24, 2015, 5:16 PM
- Sabra Health Care REIT (NASDAQ:SBRA) is buying "four skilled nursing facilities that specialize in transitional care and medically complex post-surgical, ventilator and dialysis patients with a total of 678 licensed beds" for $234M.
- The company will enter into lease agreements with the current operator of the facilities that sport "an initial term of 15 years with two 10-year renewal options and annual rent escalators equal to the greater of 2.50% or CPI, but not to exceed 2.75%."
- CEO Rick Matros: "The Canadian acquisition we recently announced reduced our skilled nursing exposure to approximately 50%, opening up the opportunity for us to look more seriously at skilled nursing acquisitions. The NMS Portfolio will only increase that exposure to 55.9%, and our intent is to maintain our skilled nursing exposure at or around 50%."
- Concurrently, Sabra has announced a 5M-share stock offering. Proceeds will be used to repay credit facility borrowings, fund acquisitions, and/or for "general corporate purposes."