AdCare Health Systems, Inc. (NYSE MKT: ADK) (NYSE MKT: ADK.PRA), a self-managed healthcare real estate investment company that invests primarily in real estate purposed for senior living and long-term healthcare, said it has begun to explore strategic alternatives for the company.
AdCare completed its transition to a healthcare property holding and leasing company by leasing, subleasing or selling all 40 of the healthcare facilities it previously owned, operated or managed. All operations transfers have been completed, the company said.
“In 2015, we delivered on our commitment to transition to a healthcare property holding and leasing company, and we enter 2016 focused on taking additional actions to increase shareholder value,” said Bill McBride, AdCare’s chairman and CEO.
“Given that the transition is complete, the board has determined the time is right to begin to explore strategic alternatives for the company, and this process is underway,” he said. “As part of the board’s efforts in reviewing its strategic alternatives, it will be hiring legal and financial advisers.”
“As we consider these strategic alternatives, we are taking specific steps to strengthen our portfolio, streamline our organization, reduce interest costs, improve cash flow, and create sustainable shareholder value, including using excess cash to repurchase shares,” added McBride.
“Today, with a portfolio of properties leased on long-term, triple-net basis, we are building on our 2015 momentum with today’s announcement that we paid down or received commitments to refinance or extend $44 million in short-term debt and the previously announced operator change for our Arkansas facilities. In addition, we are pursuing the sale or sublease of non-core real estate assets that are no longer necessary to support our new business model. We are actively working to reduce our general and administrative expenses by eliminating personnel and other costs and by collecting legacy patient care accounts receivables,” McBride said.
AdCare Health Systems, Inc. (NYSE MKT: ADK) (NYSE MKT: ADK.PRA) is a self-managed healthcare real estate investment company that invests primarily in real estate purposed for senior living and long-term healthcare through facility lease and sub-lease transactions. The company currently owns, leases or manages for third parties 38 facilities. The company was formerly known as Passport Retirement, Inc. and changed its name to AdCare Health Systems, Inc. in 1995. The company was founded in 1988 and is based in Roswell, Georgia.
The company has a Market Cap of $43.28M, and Enterprise Value (Mar 30, 2016) of $164.28M.