Sabra Acquires Michigan Senior Housing Portfolio in Sale/Leaseback Transaction

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| Source: Sabra Health Care REIT, Inc.

IRVINE, Calif., Dec. 17, 2012 (GLOBE NEWSWIRE) -- Sabra Health Care REIT, Inc. ("Sabra," the "Company" or "we") (Nasdaq:SBRA) announced the acquisition on December 14, 2012 of a nine-facility senior housing portfolio with a total of 322 units located throughout the State of Michigan for $49.0 million. Concurrently with the purchase, we entered into a triple-net master lease agreement with affiliates of Retirement Living Management ("Retirement Living"). The lease has an initial term of 10 years with two five-year renewal options and provides for annual rent escalators equal to the greater of the change in the Consumer Price Index or 3.0%, resulting in annual lease revenues determined in accordance with GAAP of $4.5 million and an initial yield on cash rent of 8.0%. The purchase price was funded with available cash and proceeds from our secured revolving credit facility. In addition, Sabra will have a right of first refusal to acquire an additional facility operated by Retirement Living and add such facility to the master lease.

Commenting on this acquisition, Rick Matros, CEO and Chairman, said, "These are beautiful resident centric physical plants built to suit today's higher-needs assisted living resident. The assets are relatively new, with all but two built in the last 10 years by the Retirement Living team. The team has a long history of dedicated passion for providing care to the elderly. We are proud to be associated with them."

ABOUT SABRA

Sabra Health Care REIT, Inc. (Nasdaq:SBRA), a Maryland corporation, operates as a self-administered, self-managed real estate investment trust (a "REIT") that, through its subsidiaries, owns and invests in real estate serving the healthcare industry. Sabra leases properties to tenants and operators throughout the United States. As of December 14, 2012, and after giving effect to the acquisition of the Retirement Living portfolio, Sabra's investment portfolio included 119 properties leased to operators/tenants under triple-net lease agreements (consisting of (i) 97 skilled nursing/post-acute facilities, (ii) 21 senior housing facilities, and (iii) one acute care hospital) and two mortgage loan investments. As of December 14, 2012, and after giving effect to the acquisition of the Retirement Living portfolio, Sabra's properties were located in 27 states and included 12,492 licensed beds/units.

The Sabra Health Care REIT, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=8563

FORWARD-LOOKING STATEMENTS SAFE HARBOR

This release contains "forward-looking" statements as defined in the Private Securities Litigation Reform Act of 1995. These statements may be identified, without limitation, by the use of "expects," "believes," "intends," "should" or comparable terms or the negative thereof. Forward-looking statements in this release include all statements regarding our expectations concerning our acquisition of the portfolio of Retirement Living facilities and the future performance of this portfolio.

Our actual results may differ materially from those projected or contemplated by our forward-looking statements as a result of various factors, including, among others, the following: our dependence on Genesis HealthCare LLC ("Genesis"), the parent company of Sun Healthcare Group, Inc.,  until we are able to further diversify our portfolio; our dependence on the operating success of our tenants; changes in general economic conditions and volatility in financial and credit markets; the dependence of our tenants on reimbursement from governmental and other third-party payors; the significant amount of and our ability to service our indebtedness; covenants in our debt agreements that may restrict our ability to make acquisitions, incur additional indebtedness and refinance indebtedness on favorable terms; increases in market interest rates; our ability to raise capital through equity financings; the relatively illiquid nature of real estate investments; competitive conditions in our industry; the loss of key management personnel or other employees; the impact of litigation and rising insurance costs on the business of our tenants; uninsured or underinsured losses affecting our properties and the possibility of environmental compliance costs and liabilities; our ability to maintain our status as a REIT; compliance with REIT requirements and certain tax matters related to our status as a REIT; and other factors discussed from time to time in our news releases, public statements and/or filings with the Securities and Exchange Commission (the "SEC"), especially the "Risk Factors" sections of our Annual and Quarterly Reports on Forms 10-K and 10-Q. We assume no, and hereby disclaim any, obligation to update any of the foregoing or any other forward-looking statements as a result of new information or new or future developments, except as otherwise required by law.

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