QUALITY CARE PROPERTIES,INC. (NYSE:QCP) Files An 8-K Other Events

ME Staff 8-k
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QUALITY CARE PROPERTIES,INC. (NYSE:QCP) Files An 8-K Other Events
Item 8.01.  Other Events.

On November 30, 2016, Quality Care Properties, Inc. (“Company”), and HCR III Healthcare, LLC (the “Lessee”), an indirect wholly-owned subsidiary of HCR ManorCare, Inc., agreed to a one time reduction of rent due under the Master Lease and Security Agreement, dated as of April 7, 2011, as amended and supplemented (the “Lease”), by and among the parties set forth on Exhibits A-1 through A-4 thereto, as lessor, and the Lessee, to which the Company, on behalf of its subsidiaries, reduced the rent due from the Lessee for December 2016 and January 2017 by an aggregate of $25 million as follows: (i) a $15,000,000 reduction for the month of December 2016, provided that such reduction is conditioned upon Lessee’s payment of such reduced rent in full on December 1, 2016; and (ii) a $10,000,000 reduction for the month of January 2017, provided that such reduction is conditioned upon Lessee’s payment of such reduced rent in full on January 2, 2017. Except as noted in the immediately preceding sentence, the amount of rent due and all other terms and conditions of the Lease remain unchanged and in full force and effect. As agreed, the Company received the reduced December rent payment on December 1, 2016.

This rent reduction offer by the Company was made in response to the Lessee’s continuing financial deterioration and its request for partial relief from the contractual rent obligation under the Lease. The Company believes that the limited relief provided to the Lessee will give the Company additional time to perform due diligence and gather information about the Lessee in advance of a potential comprehensive solution to the difficulties experienced by the Lessee under the Lease. This reduction is temporary and is not an indication of specific, longer term rent due under the Lease, nor of any other non-rent elements of a potential comprehensive economic restructuring. The Company cannot be certain that a comprehensive solution agreeable to the Lessee can be found.


About QUALITY CARE PROPERTIES, INC. (NYSE:QCP)

Quality Care Properties, Inc. is a self-managed and self-administered real estate investment trust. The Company is focused on post-acute/skilled nursing and memory care/assisted living properties. As of June 30, 2016, the Company’s portfolio included 274 post-acute/skilled nursing properties, 62 memory care/assisted living properties, a surgical hospital and a medical office building (MOB) across 30 states of the United States. The Company’s primary tenant is HCR ManorCare, Inc. (HCRMC), a provider of post-acute, memory care and hospice services. As of June 30, 2016, 249 of the Company’s post-acute/skilled nursing properties and 61 of its memory care/assisted living properties were leased to HCR III Healthcare, LLC (HCR III), a subsidiary of HCRMC. As of June 30, 2016, its hospital had a capacity of 37 beds. As of June 30, 2016, its medical office covered 88,000 square feet. As of June 30, 2016, its post-acute/skilled nursing properties had a capacity of 33,490 beds.

QUALITY CARE PROPERTIES, INC. (NYSE:QCP) Recent Trading Information

QUALITY CARE PROPERTIES, INC. (NYSE:QCP) closed its last trading session up +0.39 at 16.39 with 903,803 shares trading hands.