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Capital Senior Living Corporation Acquires Four Communities For $64.9 Million

Stocks in this article: CSU

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 four senior living communities in two transactions for a combined purchase price of approximately $64.9 million. These communities are in Indiana and South Carolina, enhancing the Company’s existing operations in these states. The communities are comprised of 388 units, consisting of 48 independent living units, 257 assisted living units and 83 memory care units.

The four communities are financed with an aggregate of approximately $49.3 million of 10-year fixed rate debt that is non-recourse to the Company with an interest rate of 5.56%.

Highlights of these transactions include:

  • Incremental net income of $1.0 million, or $0.03 per share.
  • Incremental Cash From Facility Operations (“CFFO”) of $2.3 million, or $0.08 per share.
  • Annual revenue of approximately $14.7 million.
  • Average occupancy above 95%.
  • Average monthly rents of approximately $3,100.

The Company is conducting due diligence on additional transactions consisting of high-quality senior living communities in regions with extensive existing operations. Subject to completion of due diligence and customary closing conditions, the Company expects to acquire additional communities in the first quarter of 2014.

“These acquisitions continue the successful execution of our disciplined and strategic acquisition program that increases our ownership of high-quality senior living communities in geographically concentrated regions and generates meaningful increases in CFFO, earnings and real estate value,” said Lawrence A. Cohen, Chief Executive Officer of the Company. “We are very pleased to have completed more than $150 million of acquisitions in 2013. The exceptional returns generated by these acquisitions complement the fundamental strength of our substantially all private-pay business as we benefit from need-driven demand, limited new supply and an improving economy and housing market.”

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