ARC Healthcare to acquire 12 healthcare facilities for $257.5 million

American Realty Capital Healthcare Trust, Inc., ("ARC Healthcare" or the "Company") announced today that it has entered into a contract to acquire 12 high quality, income-producing healthcare facilities aggregating $257.5 million in purchase price, increasing the total size of the portfolio, including closed assets and those under contract, to 17 properties aggregating $307.1 million.

“The portfolio has predominantly long-term, triple-net leases with contractual annual rent increases across six different types of healthcare assets. National and regional healthcare tenants dominate the rent roll, with over a third of the tenancy leased to credit-rated organizations.”

ARC Healthcare intends to acquire three rehabilitation hospitals, two ambulatory surgery center/medical offices, two hospital/medical office buildings, three post-acute care rehabilitation facilities, one long-term acute care hospital, and one medical office building; these 12 assets total 765,038 square feet.

"This is a great opportunity to purchase an institutional quality, diversified portfolio of healthcare facilities through a direct relationship with the seller," said Todd Jensen, Chief Investment Officer for ARC Healthcare. "The portfolio has predominantly long-term, triple-net leases with contractual annual rent increases across six different types of healthcare assets. National and regional healthcare tenants dominate the rent roll, with over a third of the tenancy leased to credit-rated organizations."

The portfolio is approximately 93 percent leased to 49 tenants. Only about 16 percent of the tenants, based upon occupied square feet, have lease expirations prior to December 31, 2016. Nearly 45 percent of the tenants have lease terms expiring more than ten years from the projected closings.

"These assets complement our current pipeline of high-quality properties. The average age of the properties is less than two years old, providing the Company with numerous state-of-the art healthcare real estate facilities offering the latest in high-quality patient care. A majority of the facilities are located within the largest 25 cities, which positions the portfolio to benefit from the demographic changes and growth in the over-65 population," Mr. Jensen added.

"ARC Healthcare has launched very successfully, based on the dollars raised and number of selling agreements with important independent broker dealers we have signed," offered Nicholas S. Schorsch, Chairman and CEO of American Realty Capital, the sponsor of ARC Healthcare. Already over 20,000 reps have the ability to sell ARC Healthcare. We are especially pleased with the velocity of our capital raise, further confirming the fact that our investment strategy and strong healthcare team are resonating with our investor base," said Mr. Schorsch.

"Once again, by employing institutional best practices, ARC Healthcare aligns management's interests with those of its investors, insures "pay for performance," provides clear visibility on all of its investment activities, and engineer a result that provides for a full, durable and sustainable dividend to stakeholders."