NASHVILLE, Tenn., Aug. 7, 2017 /PRNewswire/ -- MedEquities
Realty Trust, Inc. (NYSE: MRT) announced that is has signed a
definitive agreement to acquire four behavioral health and
substance abuse treatment facilities from subsidiaries of AAC
Holdings, Inc. (NYSE: AAC) for an aggregate cash purchase price of
$25 million. The Company will lease
these facilities to certain subsidiaries of AAC pursuant
to a 15-year triple-net lease at an initial lease rate of 8.75%
with annual escalators. The acquisition is expected to close by
August 11, 2017, subject to customary
closing conditions.
The AAC facilities are comprised of two standalone intensive
outpatient treatment facilities in Las
Vegas, Nevada and Arlington
(Dallas), Texas; a 110-bed sober living facility in
Las Vegas; and a 56-bed sober
living facility in Arlington that
is expected to expand to 131 beds by mid-year 2018. The intensive
outpatient and sober living facilities support two of AAC's
residential treatment facilities, Desert Hope (opened 2013) and
Greenhouse (opened 2012), in Las
Vegas and Arlington,
respectively.
John McRoberts, Chief Executive
Officer and Chairman of MedEquities, noted, "We have been looking
to expand into the behavioral health space. With this transaction,
we have identified the right operator with whom to partner and the
right facilities. We have known the AAC Holdings management team
for a number of years and were attracted by their leadership
position in the industry. Their integrated-care approach with their
larger residential facilities makes the intensive outpatient and
sober living facilities vital components in the continuum of care,
allowing clients to step down as their treatment progresses. Our
transaction provides AAC with capital to fund current and future
growth opportunities."
Headquartered in Brentwood,
Tennessee, AAC Holdings is a leading provider of inpatient
drug and alcohol addiction treatment services in the behavioral
health sector. AAC operates 12 residential alcohol and drug
addiction treatment facilities, 18 standalone outpatient centers
and three sober living facilities totaling over 1,300 beds in eight
states.
About MedEquities Realty Trust
MedEquities Realty Trust (NYSE: MRT) is a self-managed and
self-administered real estate investment trust that invests in a
diversified mix of healthcare properties and healthcare-related
real estate debt investments. The Company's management team has
extensive industry experience in acquiring, owning, developing,
financing, operating, leasing and monetizing many types of
healthcare properties and portfolios. MedEquities' strategy is to
become an integral capital partner with high-quality and
growth-oriented facility-based providers of healthcare services on
a nationwide basis, primarily through net-leased real estate
investment. For more information, please visit
www.medequities.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the U.S. federal securities laws. Forward-looking
statements provide our current expectations or forecasts of future
events and are not statements of historical fact. Words such as
"anticipates," "expects," "intends," "plans," "believes," "seeks,"
"estimates," "will" and variations of these words and other similar
expressions are intended to identify forward-looking statements.
These statements are not guarantees of future performance and are
subject to risks, uncertainties and other factors, some of which
are beyond our control, are difficult to predict and/or could cause
actual results to differ materially from those expressed or
forecasted in the forward-looking statements. Forward-looking
statements involve inherent uncertainty and may ultimately prove to
be incorrect or false. For a description of factors that may cause
the Company's actual results or performance to differ from its
forward-looking statements, see the sections entitled "Management's
Discussion and Analysis of Financial Condition and Results of
Operations" and "Risk Factors" included in the Company's Annual
Report on Form 10-K for the year ended December 31, 2016, which was filed with the
Securities and Exchange Commission (the "SEC") on February 27, 2017, and other documents filed by
the Company with the SEC. You are cautioned to not place undue
reliance on forward-looking statements. Except as otherwise may be
required by law, we undertake no obligation to update or revise
forward-looking statements to reflect changed assumptions, the
occurrence of unanticipated events or actual operating
results.
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SOURCE MedEquities Realty Trust, Inc.