Sabra Buys the NMS Portfolio

Sabra Health Care REIT (NASDAQ: SBRA) plunked down $234 million for four skilled nursing facilities, known as the “NMS Portfolio,” all located in Maryland. The four skilled nursing facilities, with a combined total of 678 beds, specialize in transitional care and medically complex post-surgical, ventilator and dialysis patients. Sabra will enter into a triple-net master lease agreement with the current operator on three of the facilities and a triple-net lease agreement on the fourth, which is encumbered by a HUD loan. They will have an initial term of 15 years, two 10-year renewal options and annual rent escalators equal to the great of 2.50% or CPI, but not to exceed 2.75%. Initial yield on cash rent is expected to be 8.75%. Sabra expects to close on three of the facilities by the end of the month, while the fourth will close upon Sabra’s assumption of a $10.8 million HUD loan with an interest rate of 5.6%.

 

 

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