NASHVILLE, Tenn. & IRVINE, Calif.--(BUSINESS WIRE)--Sep. 2, 2014--
Brookdale Senior Living (NYSE:BKD) and HCP (NYSE:HCP) today announced
the closing of their previously disclosed multiple-element transaction,
including: i) the creation of a $1.2 billion strategic joint venture
initially owning a portfolio of 14 entry fee CCRCs, and ii) amendments
to the triple-net leases on 202 HCP-owned senior housing communities
formerly operated by Emeritus Corporation, which was acquired by
Brookdale in July 2014.
As previously announced, concurrent with the closing, HCP invested $324
million of cash into the CCRC joint venture, which was used to acquire
four communities representing four of the 14 campuses that initially
constitute the venture. Brookdale will continue to manage the
communities in the CCRC portfolio.
Andy Smith, Brookdale’s Chief Executive Officer, said, “We are very
excited about broadening our relationship with HCP through both the
merger with Emeritus and this transaction, which creates attractive
opportunities to build shareholder value for Brookdale and HCP. Working
together, we expect the entry fee CCRC joint venture to become a
pre-eminent owner and operator of first-class entry-fee communities. In
addition, the modifications to the Emeritus leases, including the
creation of a 49-community RIDEA joint venture, are expected to improve
the benefits of our merger by increasing accretion and reducing lease
leverage. We appreciate the creativity and collaboration of Lauralee and
the HCP team to effect this next step in building our relationship.”
“I would like to congratulate the Brookdale and Emeritus teams again for
completing their transformational merger,” said Lauralee Martin,
President and CEO of HCP. “Brookdale has been a terrific long-term
partner to HCP, and we are delighted to have strengthened and expanded
our relationship with this best-in-class operator. This transaction
results in improved lease coverage, the elimination of purchase options
and two new joint venture platforms with significant growth potential.
We look forward to continuing to expand our relationship with Andy and
his team.”
ABOUT BROOKDALE SENIOR LIVING
Brookdale Senior Living Inc. is the leading operator of senior living
communities throughout the United States. The Company is committed to
providing senior living solutions primarily within properties that are
designed, purpose-built and operated to provide the highest-quality
service, care and living accommodations for residents. Currently
Brookdale operates independent living, assisted living, and
dementia-care communities and continuing care retirement centers, with
approximately 1,150 communities in 46 states and the ability to serve
over 110,000 residents. Through its ancillary services program, the
Company also offers a range of outpatient therapy, home health,
personalized living and hospice services.
ABOUT HCP
HCP, Inc. is a fully integrated real estate investment trust (REIT) that
invests primarily in real estate serving the healthcare industry in the
United States. HCP’s portfolio of assets is diversified among five
distinct sectors: senior housing, post-acute/skilled nursing, life
science, medical office and hospital. A publicly traded company since
1985, HCP: (i) was the first healthcare REIT selected to the S&P 500
index; (ii) has increased its dividend per share for 29 consecutive
years; (iii) is the only REIT included in the S&P 500 Dividend
Aristocrats index; and (iv) is a global leader in sustainability as a
member of the CDP, Dow Jones and FTSE4Good sustainability leadership
indices, and the Global and North American healthcare sector leader for
GRESB. For more information regarding HCP, visit the Company’s website
at www.hcpi.com.
FORWARD-LOOKING STATEMENTS
Certain items in this release may constitute forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of
1995. These statements include, among other things, statements regarding
anticipated outcomes relating to the CCRC joint venture and the
Brookdale and Emeritus merger transaction and the potential benefits of
an expanded relationship and joint ventures between HCP and Brookdale.
These statements are made as of the date hereof, are not guarantees of
future performance and are subject to known and unknown risks,
uncertainties, assumptions and other factors — many of which are out of
HCP’s, Brookdale’s and their respective management’s control and
difficult to forecast — that could cause actual results to differ
materially from those set forth in or implied by such forward-looking
statements. These risks and uncertainties include but are not limited
to: the risk that either HCP or Brookdale may not be able to achieve the
benefits of the transactions described above within expected time-frames
or within expected cost projections; and other risks and uncertainties
described from time to time in HCP’s and Brookdale’s Securities and
Exchange Commission filings, including each of HCP’s and Brookdale’s
Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. Neither
HCP nor Brookdale assumes, and each hereby expressly disclaims any,
obligation to update any of the foregoing or any other forward-looking
statements as a result of new information or new or future developments,
except as otherwise required by law.
Source: HCP and Brookdale Senior Living
Brookdale Senior Living Inc.
Investors: Ross Roadman,
615-564-8104
rroadman@brookdale.com
or
Media:
Julie Davis, 615-564-8225
jkdavis@brookdale.com
or
HCP,
Inc.
Timothy M. Schoen, 949-407-0400
Executive Vice
President & Chief Financial Officer
investorrelations@hcpi.com