Sabra Health Care REIT Buys Facility in Michigan for $26.5M

Sabra Health Care REIT, Inc. ("Sabra," the "Company" or "we")

announced the acquisition on September 21, 2012 of a 249-unit independent living facility located in Frankenmuth, Michigan for $26.5 million. Concurrently with the purchase, we entered into a triple-net lease agreement with affiliates of Unified Acquisitions & Development, LLC ("UPG"). The lease has an initial term of 10 years with two five-year renewal options and provides for annual rent escalators equal to the greater of the change in the Consumer Price Index or 3.0%, resulting in annual lease revenues determined in accordance with GAAP of $2.4 million and an initial yield on cash rent of 8.0%. The purchase price was funded with available cash.