Sabra Health Care REIT Inc. (
, a real estate investment trust (REIT), recently acquired a
249-unit independent living facility in Frankenmuth, Michigan for
$26.5 million. The transaction was funded with available cash.
HEALTH CR REIT (HCN): Free Stock Analysis
SABRA HEALTHCR (SBRA): Free Stock Analysis
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In addition to the deal, Sabra Health Care also entered into a
triple-net lease agreement with the affiliates of Unified
Acquisitions & Development, LLC under which the tenant will pay
all taxes, insurance, and maintenance costs for the property, in
addition to rent. The 10-year lease agreement includes annual rent
escalation of 3.0%, or the rate of change in the Consumer Price
Index - whichever is greater.
The strategic move aims to expand its presence in the living
facilities sector. The acquired facility provides supportive
services similar to an assisted living facility, although it is
classified under independent living. The lease agreement further
ensures value addition and is expected to be accretive to the
The company's strategy of diversifying its portfolio is further
backed by a dedicated management team. During the six months ended
June 30, 2012, Sabra Health Care acquired six skilled nursing
facilities for $55.6 million.
Based in Irvine, California, Sabra Health Care owns and invests in
real estate for the healthcare industry. The company leases
properties to tenants and operators throughout the United States.
As of September 21, 2012, Sabra Health Care's properties were
located in 26 states and included 11,689 licensed beds.
Sabra Health Care currently retains a Zacks #3 Rank, which
translates into a short-term Hold rating. We also have a long-term
Neutral recommendation on the stock. One of its competitors,
Health Care REIT
also holds a Zacks #3 Rank.