Skilled Healthcare Group's RCO signs operating lease for Lindenwood Nursing Home in Omaha

Apr 2 2011

Skilled Healthcare Group, Inc. (NYSE: SKH) today announced that its wholly owned company, The Rehabilitation Center of Omaha, LLC (RCO) has signed an operating lease for 10 years for Lindenwood Nursing Home in Omaha, Nebraska with two additional five-year extensions.  The lease also provides RCO with a purchase option and the landlord with a sale option, beginning in year six of the lease. This facility, which will be renamed The Rehabilitation Center of Omaha, is located in a large metropolitan area with several acute hospitals, and has 61 skilled nursing beds and 16 assisted living units.  The facility was built in 1960 with a building expansion completed in 1980 and currently runs an occupancy rate above the Company's consolidated portfolio average.  RCO plans to begin building improvements, including an Express Recovery Unit™, that are expected to increase skilled mix while creating enhanced amenities and rehabilitation areas for patients. 

"We are thrilled to become a part of the Omaha community and look forward to building strong relationships with patients while rehabilitating them to better health," noted Boyd Hendrickson, Chairman and CEO of Skilled Healthcare Group. "This acquisition marks the entrance into our eighth state for skilled nursing operations and fits well with our cluster market, high acuity model as well as our growth strategy to expand into new, large metropolitan markets."