Capital Senior Living Corporation (the “Company”) (NYSE:CSU), one of the country’s largest operators of senior living communities, today announced that it has completed the acquisition of three senior living communities for a purchase price of $30 million. Two of these communities are in South Carolina and one is in North Carolina, enhancing the Company’s existing operations in these states. The levels of care offered in the portfolio include independent living, assisted living and memory care. The three communities are financed with approximately $22 million of 10-year fixed rate debt that is non-recourse to the Company with an interest rate of 4.92%.
Highlights of this transaction include:
- Additional Cash From Facility Operations (“CFFO”) of $1.4 million, or $0.05 per share.
- Incremental earnings of $0.7 million, or $0.03 per share.
- Increases annual revenue by approximately $8.0 million.
- Average occupancy of 92%.
- Average monthly rents are approximately $2,900.
Additionally, the Company is conducting due diligence on additional transactions consisting of high-quality senior living communities in locations with existing extensive operations. Subject to completion of due diligence and customary closing conditions, the Company expects to acquire these communities late in the fourth quarter of 2011.
“These transactions increase the Company’s ownership of high-quality senior living communities, enhance our operations in geographic concentrations and add to the Company’s growing profitability with incremental earnings and CFFO,” said Lawrence A. Cohen, Chief Executive Officer of the Company. “Our competitive strengths enable us to continue to find attractive acquisitions and take advantage of historically low interest rates. The exceptional returns generated by this acquisition complement the positive results we are achieving in our operations with increases in occupancy and average monthly rents. These encouraging trends reflect the fundamental strength of our substantially all private-pay business as we benefit from need-driven demand and limited new supply.”