CHICAGO, July 2, 2014 /PRNewswire/ -- Aviv REIT, Inc. ("Aviv" or the "Company") (NYSE: AVIV) announced today it has acquired three post-acute and long-term care skilled nursing facilities ("SNFs") in Missouri for $16.2 million. The SNFs are triple-net leased to existing Aviv operator Diversicare Healthcare Services ("Diversicare"), an operator of 49 facilities in 9 states. Diversicare now operates three facilities in Missouri and is Aviv's 8th largest operator relationship. The investment has an initial cash yield of 10.0%, CPI-based annual escalators and an initial lease term of 14 years.
"We are pleased to expand our relationship with Diversicare by completing our second transaction with them in 2014, and we are proud to triple-net lease 10 properties to them in 4 states," said Craig M. Bernfield, Chairman and Chief Executive Officer of Aviv. "This transaction is strategic for us because we were able to increase our concentration of properties in Missouri, in addition to helping Diversicare establish a presence in Missouri. Our ability to negotiate directly with the seller in an off-market transaction resulted in an opportunity to acquire the properties at a more attractive valuation. Our extensive network of industry relationships and contacts continue to produce acquisitions with attractive returns for Aviv. We look forward to continuing to grow our portfolio in strategic markets with new and existing operator relationships."
About Aviv
Aviv REIT, Inc., based in Chicago, is a real estate investment trust that specializes in owning post-acute and long-term care SNFs and other healthcare properties. Aviv is one of the largest owners of SNFs in the United States and has been in the business for over 30 years. The Company currently owns 307 properties that are triple-net leased to 39 operators in 29 states.
For more information about the Company, please visit our website at www.avivreit.com or contact:
David J. Smith, Managing Director, Investor Relations & Capital Markets at 312-855-0930.
Forward-Looking Statements
The information presented herein includes forward-looking statements. Examples of forward-looking statements include all statements regarding our future operator relationships, business strategy, projected growth opportunities and potential acquisitions. These forward-looking statements are made based on our current expectations and beliefs concerning future events affecting us and are subject to uncertainties and factors relating to our operations and business environment, all of which are difficult to predict and many of which are beyond our control, that could cause our actual results to differ materially from those matters expressed in or implied by these statements. These factors include, among others: uncertainties relating to the operations of our operators; our ability to successfully engage in strategic acquisitions and investments; competition in the acquisition and ownership of healthcare properties; the availability and cost of capital; the amount and yield of any additional investments; and other factors disclosed under "Risk Factors" and elsewhere in filings made by us with the Securities and Exchange Commission. Except as required by law, we do not undertake any responsibility to release publicly any revisions to these forward-looking statements to take into account events or circumstances that occur after the date as of which such statements are made or to update you on the occurrence of any unanticipated events which may cause actual results to differ from those expressed or implied by the forward-looking statements contained herein.
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SOURCE Aviv REIT, Inc.
