American Retirement Corporation Announces Acquisition of Assisted Living Residence.NASHVILLE, Tenn.--(BUSINESS WIRE)--June 23, 1998--American Retirement Corporation (NYSE NYSE See: New York Stock Exchange :ACR See riser card. ) today announced that the Company has acquired Bahia Oaks Lodge, an assisted living as·sist·ed living n. A living arrangement in which people with special needs, especially older people with disabilities, reside in a facility that provides help with everyday tasks such as bathing, dressing, and taking medication. residence located in Sarasota, Florida Sarasota is a city located in Sarasota County on the central west coast of Florida, USA. Its official limits include Sarasota Bay and several barrier islands between the bay and the Gulf of Mexico. , with a capacity for approximately 100 residents. The community is currently 95% occupied. The acquisition was structured as a five-year operating lease Operating Lease A lease contract that allows the use of an asset, but does not convey rights similar to ownership of the asset. Notes: An operating lease is not capitalized it is accounted for as a rental expense. to the Company from an unaffiliated special purpose entity that simultaneously acquired the community from its former owners. In connection with the lease, the Company acquired an option to purchase the community at the expiration of the lease term for a formula purchase price. W.E. Sheriff, the Company's chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , remarked "Bahia Oaks Lodge has a stellar reputation in the Sarasota area and we are very pleased to add the community to our portfolio of assisted living residences. This acquisition also expands our Florida presence. Upon consummation of the Freedom Group acquisition, the Company will have capacity for approximately 2,640 residents in Florida and capacity for 1,130 residents under development in Florida." Certain statements contained in this press release and related statements by the Company's management constitute forward-looking information made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These forward-looking statements may be affected by certain risks and uncertainties described in the Company's filings with the Securities and Exchange Commission. The Company's actual results could differ materially from such forward-looking statements, and the Company undertakes no obligation to update such forward-looking information. American Retirement Corporation is a national senior living and health care services provider offering a broad range of care and services to seniors, including independent living, assisted living, skilled nursing, and home health care services. The Company currently operates 27 senior living communities in 13 states with an aggregate capacity for approximately 7,500 residents. The Company is constructing or developing 36 additional assisted living communities and expansion projects at five of its retirement communities, which in aggregate will add capacity for approximately 3,900 residents. Upon consummation of the recently announced Freedom Group acquisition, the Company will operate six additional communities with aggregate capacity for 3,300 residents and provide development and management services for two communities with capacity for 800 residents. The Company also owns eleven home health care agencies and manages four others for third parties.
CONTACT: American Retirement Corp., Nashville
Bill Sheriff, 615/221-2259
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