ATLANTA, Feb. 10, 2016 /PRNewswire/-- AdCare Health
Systems, Inc. (NYSE MKT: ADK) (NYSE MKT: ADK.PRA), a
self-managed healthcare real estate investment company that invests
primarily in real estate purposed for senior living and long-term
healthcare, today announced that the operations of its nine
facilities in Arkansas will be
operated by affiliates of Skyline Healthcare, LLC effective
March 1, 2016, pending licensure.
"Effective March 1, we are
welcoming a new tenant, Skyline Healthcare, as the operator of our
nine healthcare facilities located throughout Arkansas," commented Bill McBride, AdCare's Chairman and Chief
Executive Officer. "Skyline Healthcare is a well-established,
well-capitalized operator in the state of Arkansas, as well as a number of other states
across the eastern United States,
and is known for their outstanding nursing staff and high caliber
delivery of subacute and long-term care. Their level of care
exceeds industry standards and state requirements across the board
achieving the Centers for Medicaid and Medicare Services ("CMS")
five-star quality rating."
"We continuously look for opportunities to improve our
healthcare real estate portfolio, including working with tenants to
ensure our mutual success, while making adjustments to our tenant
profile and lease terms as circumstances necessitate," added Mr.
McBride. "In the case of these nine Arkansas facilities, we were able to increase
the rental revenue from the properties going forward and
significantly improve the credit profile of the overall
portfolio."
The master lease agreement, which is subject to licensure and
lender consents, includes an initial term of 15 years with two
five-year renewal options, monthly rental fees of $450,000 with 2.5% annual rent escalators, a two
month cash security deposit and a one-time, short-term option for
the leasee to purchase the facilities.
About AdCare Health Systems
AdCare Health Systems, Inc. (NYSE MKT: ADK) (NYSE MKT: ADK.PRA)
is a self-managed healthcare real estate investment company that
invests primarily in real estate purposed for senior living and
long-term healthcare through facility lease and sub-lease
transactions. The Company currently owns, leases or manages for
third parties 38 facilities. For more information about AdCare,
visit www.adcarehealth.com.
Important Cautions Regarding Forward-Looking
Statements
Statements contained in this press release that are not
historical facts may be forward-looking statements within the
meaning of federal law. Such statements can be identified by the
use of forward-looking terminology, such as "believes," "expects,"
"plans," "intends," "anticipates" and variations of such words or
similar expressions, but their absence does not mean that the
statement is not forward-looking. Such forward-looking statements
reflect management's beliefs and assumptions and are based upon
information currently available to management and involve known and
unknown risks, results, performance or achievements of AdCare,
which may differ materially from those expressed or implied in such
statements. Such factors are identified in the public filings made
by AdCare with the Securities and Exchange Commission, including
AdCare's Annual Report on Form 10-K for the year ended December 31, 2014. There is no assurance that
such factors or other factors will not affect the accuracy of such
forward-looking statements. Except where required by law, AdCare
undertakes no obligation to revise or update any forward-looking
statements to reflect events or circumstances after the date of
this press release.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/adcare-signs-master-lease-agreement-for-nine-existing-arkansas-facilities-300217482.html
SOURCE AdCare Health Systems, Inc.