Diversicare and Omega Enter Into a New Master Lease Agreement
Diversicare’s prior Master Lease with Omega provided for its operation of 23 skilled nursing centers in
Key terms of the New Master Lease are as follows:
- Common date of annual lease escalators, consolidated to
October 1st of each year beginning on October 1, 2019;
- Fixed annual base rent escalator of 2.15%;
- Provides for a landlord funded capital expenditure fund, subject to annual rent impact;
- Initial lease term of 12 years with two 10 year extensions; and
- Provides a mechanism for potential divestitures of agreed upon centers.
Additionally, Diversicare ceased operations at its
Commenting on the agreement,
The "forward-looking statements" contained in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are predictive in nature and are frequently identified by the use of terms such as "may," "will," "should," "expect," "believe," "estimate," "intend," and similar words indicating possible future expectations, events or actions. These forward-looking statements reflect our current views with respect to future events and present our estimates and assumptions only as of the date of this release. Actual results could differ materially from those contemplated by the forward-looking statements made in this release. In addition to any assumptions and other factors referred to specifically in connection with such statements, other factors, many of which are beyond our ability to control or predict, could cause our actual results to differ materially from the results expressed or implied in any forward-looking statements including, but not limited to, our ability to successfully integrate the operations of our new nursing center in
Chief Executive Officer
Source: Diversicare Healthcare Services Inc.