Benzinga | Nov 4, 2021 09:25AM EDT

DSS Expands American Medical REIT With Acquisition Of 2 Established Acute Care Hospitals In Texas And Pennsylvania For Aggregate Purchase Price Of $62M

DSS, Inc. ("DSS" or the "Company") (NYSE:DSS), a multinational company operating business segments in blockchain security, direct marketing, healthcare, consumer packaging, real estate, renewable energy, and securitized digital assets, today announced its majority-owned subsidiary, American Medical REIT Inc. ("AMRE"), has acquired three hospitals (the "Hospitals") located in Fort Worth, Texas, Plano, Texas and Pittsburgh, Pennsylvania. The aggregate purchase price for the Hospitals was $62 million. The Hospitals are currently tenanted and operated by LifeCare Hospitals (together with its affiliates, "LifeCare Hospitals"), a specialty hospital operator with a focus on long-term acute and critical care.

The Hospitals acquired by AMRE are currently under an 18-year lease with eleven years remaining and an option to renew for an additional five years. The Hospitals have a total capacity of 195 hospital beds spanning a gross floor area of approximately 320,000 square feet. The Hospitals are located near densely populated and fast-growing areas, within close proximity to state highways, making them easily accessible by patients and clients. Additionally, the Hospitals have been accredited by The Joint Commission and are Medicare-certified. In 2015, the Hospitals were awarded the Quality Respiratory Care Recognition accolade issued by the American Association of Respiratory Care.

LifeCare Hospitals has lengthy experience in operating long term and acute care facilities. Since 1992, LifeCare Hospitals' early intervention and early mobilization treatment program addresses those patients that require a length of stay greater than 5 days in the ICU/Critical care setting. LifeCare Hospitals provides these patients with additional resources that are not normally provided in traditional hospital settings to enhance the recovery process. LifeCare Hospitals operates a behavioral health hospital in Pittsburgh that delivers innovative behavioral health care by providing patient centered therapeutic interventions in a safe, compassionate, and personalized recovery environment.

"These acquisitions represent a significant expansion of our real estate operations," stated Frank D. Heuszel, CEO of DSS. "While other areas within commercial real estate have been impacted by the ongoing pandemic, medical real estate has demonstrated considerable resiliency. With a now formidable foundation in place, we are in a great position to pursue further opportunities to expand AMRE as we continue to execute on our strategic growth plans."

"Following AMRE's maiden acquisition of Ivy Brook Medical Center in July this year, we are pleased to report AMRE has expanded its portfolio with three additional quality hospitals which we believe will position us to create sustainable dividends and build value for our shareholders over the long term," commented Mr. Heng Fai Chan, Executive Chairman of the Company. "We continue to believe that the medical REIT space is a scalable and lucrative business model resilient to macroeconomic fluctuations. Looking ahead, we intend to focus our attention on advancing additional acquisitions through our pipeline of high-quality healthcare assets so as to accelerate growth for AMRE."

In connection with the acquisition of the Hospitals, DSS Securities, a wholly owned subsidiary of DSS, loaned AMRE $0.8 million and American Pacific Bancorp, Inc., a majority-owned subsidiary of DSS, loaned AMRE $13.9 million.