MedEquities Realty Trust To Acquire Skilled Nursing Facility From Prospect Medical Holdings For $10 Million And Initiates New Relationship

NASHVILLE, Tenn., June 15, 2017 /PRNewswire/ -- MedEquities Realty Trust, Inc. (NYSE: MRT) announced it has executed a definitive agreement to acquire the real property comprising Woodlake at Tolland Nursing & Rehabilitation Center, a skilled nursing facility, from a wholly owned subsidiary of Prospect Medical Holdings, Inc. for an aggregate cash purchase price of $10 million. The Company will lease this facility to Prospect ECHN Eldercare Services, Inc. pursuant to a 12-year triple-net lease at an initial lease rate of 9.0% with annual escalators. Prospect Medical Holdings and Prospect ECHN will also provide a guaranty for the lease. The transaction is expected to close within 60 days, subject to closing conditions and Connecticut regulatory approval.

Woodlake at Tolland is a three-story, free-standing skilled nursing facility located in Tolland, Connecticut approximately 20 miles northeast of Hartford.  The facility contains approximately 65,000 square feet and is licensed for 130 beds.

Based in Los Angeles, Prospect Medical Holdings owns 20 acute-care and behavioral hospitals, physician networks and integrated healthcare facilities in Southern California, Connecticut, New Jersey, Pennsylvania, Rhode Island and South Central Texas with approximately 3,790 licensed beds and a network of specialty and primary clinics. In addition to Woodlake at Tolland, Prospect ECHN owns three hospitals in Connecticut and a network of outpatient service centers and providers and specialists.

John McRoberts, Chief Executive Officer and Chairman of MedEquities, noted "Prospect has successfully grown with their coordinated regional care approach to create leading market positions in the communities they serve.  The ability for us to enter into a Certificate of Need state through the acquisition of a high-quality asset with a proven operator as well as the potential to expand our working relationship with Prospect in the future made this a very compelling investment opportunity."

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.

Forward-Looking Statements

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SOURCE MedEquities Realty Trust, Inc.