MedEquities Realty Trust Signs Agreement To Re-Tenant Texas Skilled Nursing Portfolio
NASHVILLE, Tenn., Nov. 10, 2018
NASHVILLE, Tenn., Nov. 10, 2018 /PRNewswire/ -- MedEquities Realty Trust, Inc. (NYSE: MRT) announced that it has signed a new, 15-year triple net lease with Creative Solutions in Healthcare ("Creative Solutions"), a regional skilled nursing and assisted living facility operator based in Fort Worth, Texas, for all 10 of the Company's locations currently leased to affiliates of OnPointe (the "Texas Ten Portfolio").
Creative Solutions will begin operating the facilities upon receipt of all outstanding regulatory approvals, which is expected to be on or about January 1, 2019, at which time the new lease will commence. Initial annual base rent under the lease will be $7,700,000 with annual lease escalators of 2% and two, five-year tenant renewal options. The lease is guaranteed by Creative Solutions' management company along with personal guarantees from its two co-founders.
Founded in 2000, Creative Solutions has a proven track record in the long-term care industry and currently operates 55 skilled nursing facilities and seven assisted living facilities, all of which are located in the State of Texas.
John McRoberts, Chairman and CEO of MedEquities Realty Trust, noted, "We are pleased to announce this agreement to re-tenant our Texas Ten Portfolio with a proven operator like Creative Solutions in Healthcare. We worked closely with a number of interested operators and narrowed our focus to Creative based on their scale and experience in Texas, strong operating history, solid financial and operating metrics and a reputation for quality."
The Company has furnished a supplemental investor presentation on the Creative Solutions lease on its Investor Relations page.
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.
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. These forward-looking statements include information about the Company's strategic plans and objectives, our ability to close under the new lease to Creative Solutions for our Texas Ten facilities under the terms described herein and to transition operations on the time schedule expected and other matters. 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 most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (the "SEC"), and other documents filed by the Company with the SEC from time to time. 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.