NEWPORT BEACH, Calif., April 6 /PRNewswire-FirstCall/ -- Nationwide Health Properties, Inc. today announced that it has completed the first stage of its previously announced proposed acquisition and triple-net master leaseback to Emeritus Corporation of up to 24 assisted living facilities in 13 states, including up to 10 stand-alone dementia care facilities, for approximately $187 million. The closing involved 17 of the senior housing and long-term care properties for a total investment of about $136 million. Of the up to $51 million balance of the transaction, at least $37.2 million is expected to close during the second quarter, subject to the negotiation of definitive documentation and customary closing conditions.
Nationwide Health Properties, Inc. is a real estate investment trust that invests in health care facilities. The Company has investments in 399 facilities in 38 states. For further information go to http://www.nhp-reit.com/.
Certain information contained in this news release, especially that related to the proposed investment described above, includes forward-looking statements. Forward-looking statements include statements regarding our expectations, beliefs, intentions, plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements which are not statements of historical facts. These statements may be identified, without limitation, by the use of forward looking terminology such as “may,” “will,” “anticipates,” “expects,” “believes,” “intends,” “should” or comparable terms or the negative thereof. All forward-looking statements included in this news release are based on information available to us on the date hereof. These statements speak only as of the date hereof, and we assume no obligation to update such forward-looking statements for any reason or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. These statements involve risks and uncertainties that could cause actual results to differ materially from those described in the statements. These risks and uncertainties include (without limitation) the following: failure to negotiate acceptable definitive documentation or consummate one or more of the expected closings due to the inability to obtain third party consents or otherwise; continued deterioration of the operating results or financial condition, including bankruptcies, of our tenants; occupancy levels at certain facilities; changes in the ratings of our debt securities; access to the capital markets and the cost of capital; government regulations, including changes in the reimbursement levels under the Medicare and Medicaid programs; the general distress of the healthcare industry; the effect of economic and market conditions and changes in interest rates; the amount and yield of any additional investments; the ability of our operators to repay deferred rent or loans in future periods; the ability of our operators to obtain and maintain adequate liability and other insurance; our ability to attract new operators for certain facilities; our ability to sell certain facilities for their book value; changes in tax laws and regulations affecting real estate investment trusts; and the risk factors described in Item 5 of our current report on Form 8-K filed with the SEC on January 21, 2004.
CLOSED INVESTMENT Investment Amount: $136 million. Properties: 17 Assisted Living Facilities, including 8 stand-alone dementia care facilities. * 1,192 total units (1,402 beds). * 10 states (6 in Texas; 2 in California; 2 in Mississippi; and one each in Florida, Georgia, Illinois, Louisiana, Massachusetts, North Carolina and West Virginia. * Occupancy: 90%. * 100% private pay. * Average building age: 5 years PENDING INVESTMENT - EXPECTED SECOND QUARTER CLOSING Investment Amount: $37.2 million. Properties: 4 Assisted Living Facilities, including 1 stand-alone dementia care facility. * 330 total units (356 beds). * 2 additional states (one each in Washington and New Jersey, in addition to one additional facility in each of Texas and Illinois). * Occupancy: 95%. * 100% private pay. * Average building age: 5 years PENDING INVESTMENT - OTHER Investment Amount: Up to $13.8 million. Properties: Up to 3 Assisted Living Facilities, including 1 stand-alone dementia care facility. * 239 total units (244 beds). * 1 additional state (One in Missouri, in addition to one additional facility in each of California and Washington). * Occupancy: 81%. * 100% private pay. * Building age range: 5 to 18 years ASSUMED DEBT INCLUDED IN INVESTMENT AMOUNT Closed Investment: $36 million. Pending Investment - Expected Second Quarter Closing: $25 million. Pending Investment - Other: $0. Average Blended Rate: 7%. INVESTMENT TERMS Master Lease: 15-year initial term; three, five-year renewal options; no purchase option. Initial Rent Rate: 9%. Annual Escalators: Four times CPI increases, capped at 3%. Current Rental Coverage: 1.5x. Impounds/Security: Monthly impounds required for property tax and capital upgrades and expenditures; up to $2 million transaction fee paid to NHP will be treated as a security deposit against future performance under the master lease; further tenant security deposits required if certain coverage levels are not met and maintained. CONTACT: R. Bruce Andrews Douglas M. Pasquale Mark L. Desmond President & CEO EVP & COO SVP & CFO (949) 718-4400 (949) 718-4400 (949) 718-4400
Nationwide Health Properties, Inc.
CONTACT: R. Bruce Andrews, President & CEO, Douglas M. Pasquale, EVP &COO, or Mark L. Desmond, SVP & CFO, all of Nationwide Health Properties, Inc.,+1-949-718-4400
Web site: http://www.nhp-reit.com/
