NEWS PROVIDED BY
MedEquities Realty Trust, Inc.
Feb 07, 2017, 06:30 ET
Advanced Diagnostics Hospital East, Houston (Image courtesy of Advanced Diagnostics Hospital East)
Beginning on October 1, 2017, MedEquities will have the exclusive option to purchase the hospital for $12.5 million pursuant to a 15-year triple-net lease at an initial annual lease rate of 9.6% with annual escalators. During the term of the lease, MedEquities will have the right of first refusal to acquire and/or the option to fund any new medical facility development involving the hospital or its management team. The interest-only loan matures on February 1, 2018, with automatic extensions until September 30, 2019 if MedEquities does not exercise its purchase option prior to maturity.
John McRoberts, Chief Executive Officer and Chairman of MedEquities, noted, “Advanced Diagnostics Hospital is primarily a short-stay and outpatient surgical hospital focusing on the thriving East Houston and Port of Houston markets. This investment is an attractive addition to our portfolio, and we are looking forward to potential future transactions with the company in other markets as they expand.”
Advanced Diagnostics Hospital East is a licensed general acute care hospital that has met the requirements to receive the Gold Seal of Approval from The Joint Commission. Primary service offerings include multi-specialty surgeries with a strategy focused on in-network cases. Operating in the East Houston market, the hospital campus consists of approximately 1.6 acres and 23,300 square feet with four operating rooms, two special procedure rooms, four inpatient rooms and four full-size extended recovery rooms.
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. These forward-looking statements include information about the strategic plans and objectives, potential property acquisitions and investments, anticipated capital expenditures (and access to capital), amounts of anticipated cash distributions to our stockholders in the future 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 Quarterly Report on Form 10-Q for the quarter ended September 30, 2016), which was filed with the with the Securities and Exchange Commission (the “SEC”) on November 10, 2016, 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.
SOURCE MedEquities Realty Trust, Inc.
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