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 five senior living communities for a purchase price of $49.4 million. These communities are in Texas and Indiana, 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 five communities are financed with approximately $37.5 million of 10-year fixed rate debt that is non-recourse to the Company with a blended interest rate of 4.71%.
Highlights of this transaction include:
- Additional Cash From Facility Operations (“CFFO”) of $2.6 million, or $0.10 per share.
- Incremental earnings of $1.5 million, or $0.06 per share.
- Increases annual revenue by approximately $12.8 million.
- Average occupancy of 94%.
- Average monthly rents are approximately $3,200.
Additionally, the Company has completed due diligence on additional transactions consisting of high-quality senior living communities in regions with existing extensive operations. Subject to customary closing conditions, the Company expects to acquire these communities in the second quarter of 2012.
“These acquisitions 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 these acquisitions 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.”