Five Star Senior Living Inc. (Nasdaq: FVE), or Five Star, today announced that it has entered into a definitive agreement to modify its existing business arrangements with Senior Housing Properties Trust (Nasdaq: SNH).
Five Star expects its current financial position and near-term liquidity challenges will be immediately improved because of the transaction. Key features of the transaction include the following:
- Commencing February 1, 2019, Five Stars aggregate monthly rent payments for the senior living communities that Five Star leases from SNH have been reduced from approximately $17.4 million to $11.0 million.
- Five Star has sold approximately $50 million of property, plant and equipment to SNH relating to the senior living communitie…
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