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NASHVILLE, Tenn., Aug. 7, 2017 /PRNewswire/ -- MedEquities Realty Trust, Inc. (NYSE: MRT) announced that is has signed a definitive agreement to acquire four behavioral health and substance abuse treatment facilities from subsidiaries of AAC Holdings, Inc. (NYSE: AAC) for an aggregate cash purchase price of $25 million. The Company will lease these facilities to certain subsidiaries of AAC pursuant to a 15-year triple-net lease at an initial lease rate of 8.75% with annual escalators. The acquisition is expected to close by August 11, 2017, subject to customary closing conditions.
The AAC facilities are comprised of two standalone intensive outpatient treatment facilities in Las Vegas, Nevada and Arlington (Dallas), Texas; a 110-bed sober living facility in Las Vegas; and a 56-bed sober living facility in Arlington that is expected to expand to 131 beds by mid-year 2018. The intensive outpatient and sober living facilities support two of AAC's residential treatment facilities, Desert Hope (opened 2013) and Greenhouse (opened 2012), in Las Vegas and Arlington, respectively.
John McRoberts, Chief Executive Officer and Chairman of MedEquities, noted, "We have been looking to expand into the behavioral health space. With this transaction, we have identified the right operator with whom to partner and the right facilities. We have known the AAC Holdings management team for a number of years and were attracted by their leadership position in the industry. Their integrated-care approach with their larger residential facilities makes the intensive outpatient and sober living facilities vital components in the continuum of care, allowing clients to step down as their treatment progresses. Our transaction provides AAC with capital to fund current and future growth opportunities."
Headquartered in Brentwood, Tennessee, AAC Holdings is a leading provider of inpatient drug and alcohol addiction treatment services in the behavioral health sector. AAC operates 12 residential alcohol and drug addiction treatment facilities, 18 standalone outpatient centers and three sober living facilities totaling over 1,300 beds in eight states.
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. 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 Annual Report on Form 10-K for the year ended December 31, 2016, which was filed with the Securities and Exchange Commission (the "SEC") on February 27, 2017, 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.
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