<PAGE>
EXHIBIT 99.1
PRESS RELEASE THE MEDITRUST COMPANIES
--------------------------------------------------------------------------------
909 Hidden Ridge, Suite 600, Irving, Texas 75038
(214) 492-6600 - Fax (214) 492-6616
Contact: Karen B. Manna
781-433-6000
FOR IMMEDIATE RELEASE
MEDITRUST COMPLETES AN ADDITIONAL $500 MILLION OF ASSET SALES
TOTAL BANK DEBT REDUCED TO $450 MILLION; TOTAL DEBT OUTSTANDING
REDUCED TO $1.6 BILLION
DALLAS, TEXAS - September 5, 2000 - The Meditrust Companies (NYSE:MT) announced
today that it has recently completed additional healthcare asset sales and
mortgage repayments of approximately $500 million, generating total proceeds
since the announcement of its Five Point Plan of reorganization in January 2000
of $959 million. The net book value of Meditrust's remaining healthcare assets
is approximately $1 billion.
The early repayment of mortgages related to 100 facilities and the purchase of
one facility by Life Care Centers of America, Inc. and Health Asset Realty
Trust, generated total proceeds of $500 million. This transaction involved 96
long-term care facilities, three assisted living facilities, and two retirement
living facilities. A summary of Meditrust's real estate portfolio as of June 30,
2000, pro forma for asset sales from July 1 through September 1, 2000, is
attached as Exhibit 1 to this release.
Francis W. ("Butch") Cash, Chief Executive Officer of Meditrust said, "Over the
past seven months we have sold healthcare assets and paid down debt, executing
the goals outlined in our Five Point Plan. We are pleased with our success and
will continue our work to position Meditrust as an operationally sound and
substantially deleveraged company."
With the above-described transaction, as well as those described below,
Meditrust has completed $959 million of transactions since the announcement of
its Five Point Plan:
- the sale of the Companies' medical office building management company, 23
medical office buildings, three medical office building mortgage loans, 12
assisted living facilities, and the partial repayment of one mortgage loan
for total consideration of $236 million;
- the early repayment of a mortgage related to a long-term care facility for
$8 million;
- the sale of four long-term care facilities with total proceeds of $22
million;
- the early repayment of mortgage loans related to two medical office
buildings for $48 million;
- the sale of one mortgage loan on a retirement living facility for $7
million; and
- the sale of one medical office building and one long-term care facility
along with the early repayment of mortgages pertaining to five assisted
living facilities and two long-term care facilities, for total proceeds of
$138 million.
Losses recorded related to these $959 million of transactions, including
previously recorded provisions for "assets held for sale", are approximately
$244 million. Part of the $500 million in proceeds from the transactions
announced today were used to fully pay down Meditrust's revolving credit line.
The Company has also voluntarily reduced its revolving credit line commitment
from $850 million to $400 million and agreed to prepay $50 million of its term
bank loan (Tranche D commitment). Total debt due in the year 2001 has now been
reduced to $676 million from $1.4 billion at December 31, 1999. Total
indebtedness has now been reduced to $1.6 billion from $2.6 billion at December
31, 1999.
<PAGE>
Michael F. Bushee, Chief Operating Officer of Meditrust Corporation, commented,
"We are pleased with our ability to complete a transaction of this size
involving healthcare mortgages in a tight market for healthcare capital. The
closing of this transaction demonstrates the Companies' ability to sell
healthcare assets, even in difficult times. Looking forward, we remain confident
in our ability to sell assets, particularly given that the cash flow coverage of
our remaining portfolio is 1.6 X for the six months ended June 30, 2000."
ABOUT THE MEDITRUST COMPANIES
The Meditrust Companies, (NYSE:MT), a real estate investment trust headquartered
in Dallas, Texas, consists of Meditrust Corporation, a REIT, and Meditrust
Operating Company. Meditrust Corporation's portfolio consists of 300 lodging
facilities, 94 long-term care facilities, 94 retirement and assisted living
facilities, five medical office buildings, and seven other healthcare
facilities. Meditrust Operating Company operates all of the lodging facilities
under the La Quinta brand name. Today's news release as well as other news about
The Meditrust Companies is available on the Internet at www.reit.com.
ABOUT LA QUINTA INNS, INC.
La Quinta Inns, Inc. owns and operates 230 Inns and 70 Inn & Suites in 28
states. La Quinta is the lodging division of The Meditrust Companies and is also
headquartered in Dallas. For more information about La Quinta, please visit its
Web site at www.laquinta.com.
###
CERTAIN MATTERS DISCUSSED WITHIN THIS PRESS RELEASE MAY CONSTITUTE
"FORWARD-LOOKING STATEMENTS" WITHIN THE MEANING OF THE FEDERAL SECURITIES LAWS.
ALTHOUGH THE MEDITRUST COMPANIES BELIEVE THE STATEMENTS ARE BASED ON REASONABLE
ASSUMPTIONS, IT CAN GIVE NO ASSURANCE THAT ITS EXPECTATIONS WILL BE ATTAINED.
ACTUAL RESULTS AND THE TIMING OF CERTAIN EVENTS COULD DIFFER MATERIALLY FROM
THOSE PROJECTED IN OR CONTEMPLATED BY THE FORWARD-LOOKING STATEMENTS DUE TO A
NUMBER OF FACTORS, INCLUDING, WITHOUT LIMITATION, GENERAL ECONOMIC AND REAL
ESTATE CONDITIONS, THE CONDITIONS OF THE CAPITAL MARKETS IN GENERAL, THE
IDENTIFICATION OF SATISFACTORY PROSPECTIVE BUYERS FOR HEALTHCARE RELATED ASSETS
AND THE AVAILABILITY OF FINANCING FOR SUCH PROSPECTIVE BUYERS, THE AVAILABILITY
OF FINANCING FOR THE COMPANIES' CAPITAL INVESTMENT PROGRAM, INTEREST RATES, THE
FINANCIAL CONDITION OF THE OPERATORS OF MEDITRUST CORPORATION'S HEALTHCARE
ASSETS, INCLUDING THE FILING FOR PROTECTION UNDER THE US BANKRUPTCY CODE BY ANY
ADDITIONAL OPERATORS OF THE COMPANIES' HEALTHCARE ASSETS, THE IMPACT OF THE
PROTECTION OFFERED UNDER THE US BANKRUPTCY CODE FOR THOSE OPERATORS WHO HAVE
ALREADY FILED FOR SUCH PROTECTION, COMPETITION FOR HOTEL SERVICES AND HEALTHCARE
FACILITIES IN A GIVEN MARKET, THE ENACTMENT OF LEGISLATION FURTHER IMPACTING THE
COMPANIES' STATUS AS A PAIRED SHARE REIT OR MEDITRUST CORPORATION'S STATUS AS A
REIT, THE IMPLEMENTATION OF REGULATIONS IMPACTING MEDITRUST CORPORATION'S
HEALTHCARE BUSINESS, INCLUDING REGULATIONS GOVERNING PAYMENTS TO OPERATORS OF
HEALTHCARE FACILITIES, AND OTHER RISKS DETAILED FROM TIME TO TIME IN THE FILINGS
OF MEDITRUST CORPORATION AND MEDITRUST OPERATING COMPANY WITH THE SECURITIES AND
EXCHANGE COMMISSION, INCLUDING THE JOINT ANNUAL REPORT ON FORM 10-K FOR THE YEAR
ENDED DECEMBER 31, 1999 AND OTHER PERIODIC FILINGS UNDER THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED.
<PAGE>
Exhibit 1
The Meditrust Companies
Real Estate Portfolio Summary
(Unaudited)
as of June 30, 2000
Pro forma for asset sales from July 1 - September 1, 2000
<TABLE>
<CAPTION>
Invested % of # of
Portfolio by Operator (in thousands) Portfolio Properties
<S> <C> <C> <C>
HEALTHCARE:
Sun Healthcare Group, Inc. (A) $ 407,099 10.4% 41
Alterra (A) 161,592 4.1% 57
Harborside 103,411 2.7% 18
Balanced Care Corporation (A) 92,633 2.4% 19
Tenet Healthcare/Iasis (A) 65,650 1.7% 1
Integrated Health Services, Inc. (A) 50,973 1.3% 10
CareMatrix Corporation (A) 50,658 1.3% 4
Genesis Health Ventures, Inc. (A) 35,639 0.9% 8
Assisted Living Concepts (A) 31,487 0.8% 16
ARV Assisted Living, Inc. (A) 28,982 0.7% 4
Life Care Centers of America, Inc. 26,212 0.7% 2
HealthSouth (A) 25,270 0.6% 2
Other Public Operators (A) 29,718 0.8% 4
Other Non-Public Operators 120,754 3.1% 13
Paramount Real Estate Services 9,756 0.3% 1
----------------------------------------------
1,239,834 31.8% 200
LODGING:
La Quinta Companies 2,659,191 68.2% 300
----------------------------------------------
Gross Real Estate Assets $ 3,899,025 100% 500
==============================================
(A) Denotes publicly held companies
Portfolio by Investment Type
Owned properties $ 3,615,462 92.7% 463
Mortgage 283,563 7.3% 37
----------------------------------------------
$ 3,899,025 100% 500
==============================================
Portfolio by Facility Type
Lodging $ 2,659,191 68.2% 300
Long-term Care 755,127 19.3% 94
Retirement and Assisted Living 328,067 8.4% 94
Medical Office Buildings 37,818 1.0% 5
Acute-Care Hospital Campus 65,650 1.7% 1
Other Healthcare 37,513 1.0% 6
Land held for development 11,974 0.3%
Other 3,685 0.1%
----------------------------------------------
$ 3,899,025 100% 500
==============================================
</TABLE>
