Regional Health Properties’ merger with Sunlink Heath System now is expected to close early in the third quarter, the Atlanta-based self-managed healthcare real estate investment company’s president, CEO and chairman, Brent Morrison, said Monday in a fourth quarter and end of year financial report.
The merger originally was predicted to close in the spring when it was detailed in a Jan. 3 filing with the Securities and Exchange Commission.
When the merger is complete, SunLink shareholders will own approximately 43% of the combined company.
‘Transformative year’
Morrison said that last year was a “transformative” one for RHP.
“In 2024, we focused on strengthening our operational foundation and positioning the Company for sustained growth,” he said.
For the full year, RHP reported revenue of $18.3 million and income from operations of $161,000. The company generated earnings before interest, taxes, depreciation and amortisation, or EBITDA, of $1.7 million and adjusted EBITDA of $3.5 million.
As of Dec. 31, the company had $49.7 million, net of outstanding indebtedness with a weighted-average annual interest rate of 5.1% and a weighted-average maturity of approximately 16 years.
For all of 2024, net cash provided by operating activities was $1.9 million. The company said it had negotiated with a former operator to collect remaining unpaid rent.
Highlights of the fourth quarter:
- Meadowood Retirement Village in Glencoe, AL, continued its operational improvement, RHP said, reaching its highest occupancy since 2022.
- RHP reported revenue of $5.6 million and generated income from operations of $540,000.
- The company said it collected 92% of contractual rent.
- RHP generated EBITDA of $714,000 and adjusted EBITDA of $1.3 million.
- The company obtained a $500,000 line of credit from Exchange Bank, Regional’s current lender in Alabama.
In 2025, after the time period covered by the call, RHP entered into a second management contract with CJM Advisors to manage a facility in Glenville, GA, the company reported.
“We are pleased with the results from Chris Murphy and his team at CJM and look forward to growing the relationship in 2025,” Morrison said.