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Sabra REIT Restructures Avamere’s Base Rent
Sabra Health Care REIT has amended its master lease with tenant Avamere Group, a West Coast operator of skilled nursing facilities and seniors housing. Avamere’s annual base rent has been reduced 30% to $30.7 million, and Irvine-based Sabra has the opportunity to recapture the rent reduction as the portfolio’s performance improves.
Rick Matros, CEO and chairman of Sabra, said, “The combination of tight rent coverage on our portfolio prior to the COVID pandemic coupled with the unprecedented challenges of the past two years on Avamere’s overall operations necessitates a restructuring of our master lease. Importantly, this restructuring provides valuable breathing room to Avamere, while preserving optionality for Sabra to participate in operating upside.”
Avamere is expected to fund a security deposit over the first 20 months of the newly amended lease. It has paid past due rent for December 2021 and has agreed to pay January rent by March 25.
- ◦Lease
