HealthLease Properties Real Estate Investment Trust Announces Completion of Acquisition of 13 Senior Housing and Care Properties

TORONTO, April 16, 2013 /CNW/ - HealthLease Properties Real Estate Investment Trust (HLP.UN) ("HealthLease" or "the REIT") today announced that it has completed the acquisition of 13 senior housing and care properties, previously announced on March 21, 2013.  The properties-ten in North Carolina, two in Pennsylvania, and one in Virginia-were acquired at an aggregate purchase price of US$141.7 million.  The properties have an average age of approximately four years from the year built or substantially renovated. The acquisition was funded with a combination of debt financing and proceeds from the recently completed offering of trust units.

"We are very pleased to complete this acquisition, which significantly increases our size, enhances our health care product mix and improves our geographic diversification," said Zeke Turner, Chairman and CEO of HealthLease. "The transaction is immediately accretive and will reduce our payout ratio.  Consistent with our growth strategy, the properties expand our portfolio of next-generation facilities that are leased under triple-net structures to leading operators.  We continue to see acquisition opportunities in the both the Canadian and U.S. markets, and believe that these opportunities, along with our development pipeline, provide us with significant growth potential over the short and long term."

The acquired properties represent a total of 978 beds, consisting of 355 beds in four skilled nursing facilities ("SNFs"), 563 beds in eight combination assisted living/Alzheimers facilities ("AL/ALZs"), and 60 beds in one standalone Alzheimer facility.  Six properties are leased to Meridian Senior Living, which operates 91 facilities across 12 states.  The remaining seven properties are leased to Saber Healthcare Group, LLC, which operates 56 facilities across six states.  In total, the acquired properties have a weighted average lease term of 10.5 years.

With the completion of the acquisition, HealthLease's portfolio now consists of 28 facilities with a total of 2,909 beds across five states and two provinces, and leased to a total of 11 tenant-operators.

HealthLease Portfolio
Location		Number of Facilities		SNF/LTC Beds		AL/ALZ/ILF Beds		Total Beds
Alberta		5		515		271		786
British Columbia		1		57		159		516
Illinois		1		75		-		75
Indiana		8		679		175		854
North Carolina		10		80		623		703
Pennsylvania		2		185		-		185
Virginia		1		90		-		90
Total		28		1,681		1,228		2,909
* LTC - Long-term Care; ILF - Independent Living Facility

About HealthLease Properties Real Estate Investment Trust

HealthLease Properties Real Estate Investment Trust (TSX: HLP.UN) owns a premier portfolio of seniors housing and care facilities located in the United States and Canada.  The properties are leased to experienced tenant operators who have significant operational experience. The leases are structured as long-term and triple-net, features that provide stability and dependability to the REIT's cash flow and distributions. The REIT's best-in-class portfolio of properties meets the needs of modern seniors by emphasizing features such as hotel-like design, private rooms and baths, and hospitality-inspired amenities.  For more information, visit www.hlpreit.com.

Forward-Looking Information

This news release contains forward-looking statements which reflect the REIT's current expectations regarding future events. The forward-looking statements involve risks and uncertainties, including those set forth in the REIT's AIF dated March 6, 2013 under the section "Risk Factors," a copy of which can be obtained at www.sedar.com. Actual results could differ materially from those projected herein. The REIT disclaims any obligation to update these forward-looking statements.

 

 

SOURCE: HealthLease Properties Real Estate Investment Trust

Adlai Chester
Chief Financial Officer
HealthLease Properties REIT
[phone] ext. 106

Salvador Diaz
Investor Relations
TMX Equicom
[phone] ext. 242