Quality Care Properties reduces ManorCare's rent
The cost of borrowing money just went up, and more increases appear likely
Quality Care Properties has reduced HCR ManorCare's monthly rent, although ManorCare still expects that it will not be able to pay the full amount, the self-managed and self-administered real estate investment trust announced in a Dec. 22 filing with the Securities and Exchange Commission.
An amendment to ManorCare's master lease and security agreement changes the company's monthly rent to $23.5 million from Nov. 30, 2017, to Nov. 30, 2018, QCP said.
The agreement, however, “includes an acknowledgement by QCP that HCR ManorCare has informed QCP that HCR III expects that it will be unable to pay a material portion of Reduced Cash Rent during part or all of the Rent Reduction Period as a result of HCR III's financial condition,” according to the QCP filing.
Earlier this month, QCP announced that ManorCare had until mid-January to respond to its request that an independent receiver be appointed to oversee the company's assisted living and skilled nursing facilities. Until that time, QCP said, the companies are negotiating in good faith on a comprehensive restructuring of their economic relationship. QCP has extended the deadline several times in the past.