Acquisition with Advocat
CHICAGO, Sept. 25, 2012 - Aviv REIT, Inc. ("Aviv" or the "Company") announced today that it has acquired a post-acute and long-term care skilled nursing facility ("SNF") located in Kentucky for $9.9 million. The property will be triple-net leased to publicly-traded Advocat Inc.("Advocat"), a new tenant relationship for Aviv. Advocat is an operator of SNFs in the United States, with 48 facilities located in 8 states. The triple-net lease has a 15 year term, an initial cash yield of 10.2 percent and annual compounded escalators based on CPI. The transaction closed on September 24th and was funded with cash on hand.
"We are excited about this transaction as it represents a new strategic relationship for Aviv," said Craig M. Bernfield, Chairman, Chief Executive Officer and President of Aviv. "This acquisition was an opportunity to acquire a quality care center that recently underwent a $3 million renovation and we are also pleased to further diversify our portfolio by entering into a new state. We look forward to growing our relationship with Advocat."
About Aviv Aviv REIT, Inc., based in Chicago, is a privately-owned real estate investment trust that specializes in owning post-acute and long-term care SNFs and other healthcare properties. Aviv is one of the largest owners of SNFs in the United States and has been in the business for over 30 years. The Company currently owns 252 properties that are triple-net leased to 37 operators in 29 states.
This press release may include forward-looking statements. Forward-looking statements can be identified by the use of words such as "may," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "intends," "continue" or similar terminology. These forward-looking statements are made based on our current expectations and beliefs concerning future events affecting us and are subject to uncertainties and factors relating to our operations and business environment, all of which are difficult to predict and many of which are beyond our control, that could cause our actual results to differ materially from those matters expressed in or implied by these forward-looking statements. These uncertainties include, but are not limited to, uncertainties relating to the operations of our tenants, including those relating to reimbursement by government and other third-party payors, compliance with regulatory requirements and occupancy levels, regulatory, reimbursement and other changes in the healthcare industry, the performance and reputation of our tenants, our ability to successfully engage in strategic acquisitions and investments, the effect of general market, economic and political conditions, the availability and cost of capital, changes in tax laws and regulations affecting REITs and our ability to maintain our status as a REIT. Important factors that could cause actual results to differ materially from our expectations include those disclosed under "Risk Factors" and elsewhere in filings made by Aviv REIT, Inc. and Aviv Healthcare Properties Limited Partnership with the Securities and Exchange Commission.
SOURCE Aviv REIT, Inc.