American Health Properties, Inc. restructures investments in two Florida psychiatric hospitals.DENVER--(BUSINESS WIRE)--March 3, 1995--American Health Properties, Inc. (NYSE NYSE See: New York Stock Exchange :AHE) announced that it has restructured the terms of its investments in two psychiatric hospitals located in Florida that were included in a $30 million write-down the Company took in 1994 against its psychiatric portfolio. At the time of the write-down, the Company considered the potential for a restructuring of the financial obligations at these two Florida psychiatric hospitals and the level of restructured rent agreed to by the Company is consistent with the current carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of these properties. Pursuant to the restructuring effective January 1, 1995, the annual minimum rent obligation on The Retreat psychiatric hospital located in Sunrise, Florida Sunrise is a city in Broward County, Florida, United States. Originally called "Sunrise Golf Village,"City of Sunrise History the name did not sit well with the retirees whom developers wanted to attract, so a change was made to "Sunrise. was reduced from $2,359,000 to $1,100,000. An existing $1,000,000 lease reserve fund for that hospital was used to repay outstanding borrowings on a working capital loan provided by the Company. Correspondingly, the maximum amount available for borrowing under the line was reduced from $2,250,000 to $1,000,000. The annual minimum rent obligation on The Manors psychiatric hospital located in Tarpon Springs, Florida Tarpon Springs is a city in Pinellas County, Florida, United States. The population was 21,003 at the 2000 census. According to the U.S. Census Bureau's 2004 estimates, the city had a population of 22,554. was reduced from $855,000 to $600,000. An existing $325,000 lease reserve fund for that hospital was used to repay outstanding borrowings on a $2,000,000 working capital loan provided by the Company. In connection with the restructuring for both facilities, the Company will have an enhanced participation in future revenue growth. The current net book value of the Company's real property investment in The Retreat and The Manors is $10 million and $5.9 million, respectively. Joseph P. Sullivan, President and Chief Executive Officer of the Company, stated that: "We are pleased to have completed these restructurings. This, together with our recently announced sale of two psychiatric hospitals and our proposed issuance of targeted stock related to the remaining psychiatric hospitals in our portfolio, will allow us to focus additional efforts on using the $100 million we have available under our bank line to pursue attractive new investment opportunities." AHE is a real estate investment trust (REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). ) specializing in quality health care facilities. The Company's investments include twenty-two acute care, rehabilitation rehabilitation: see physical therapy. and psychiatric hospital properties located in twelve states. CONTACT: American Health American Health Inc. is a company that manufactures health supplements. It is located in Holbrook, New York. One of its products is labeled the "Chewable Original Papaya Enzyme" with the attached registered trademark, "The 'After Meal Supplement'". Properties, Inc., Denver Victor C. Streufert, 303/796-9793 |
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