Sabra Health Care REIT Acquires 48 Unit Memory Facility in Aurora Colarado

Sabra Health Care REIT, (Nasdaq: SBRA) announced the acquisition on September 20, 2012 of a 48-unit memory care facility located in Aurora, Colorado for $16.0 million from an affiliate of New Dawn Holding Company ("New Dawn"). Concurrently with the purchase, we entered into a triple-net lease agreement with affiliates of New Dawn. The lease has an initial term of 10 years with two five-year renewal options and provides for a fixed annual rent escalator of 3.0%, resulting in annual lease revenues determined in accordance with GAAP of $1.5 million and an initial yield on cash rent of 8.0%. The purchase price was funded with available cash. In addition, Sabra was granted a right of first refusal to acquire a memory care facility owned by an affiliate of New Dawn being built in Sun City West, Arizona.

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