Capital Senior Living Corporation (NYSE:CSU) announced Monday that it has entered into a definitive agreement with Signature Assisted Living of Texas, LLC (“Signature”) to acquire Signature’s interests in 12 leases with Health Care REIT, Inc. (NYSE:HCN). The 12 leased communities are assisted living and memory care facilities located in Texas and have approximately 677 units and include 532 units of assisted living and 145 units of memory care, with a combined capacity of 764 residents. The communities average less than three years of age. In June of this year, financial occupancy at the combined communities was approximately 91%. The transaction will increase the total number of Texas communities for CSU to 29. CSU expects to close the transaction in the 3rd quarter and estimates that it will add a positive EBITDAR of $4.6 million annually.
“We believe this transaction is very strategic and will create tremendous value for our shareholders by increasing the Company’s CFFO by approximately $2.3 million or $0.09 per share,” said Lawrence A. Cohen, Chief Executive Officer of the Company. “Upon closing the transaction, the Company will operate a significantly larger platform in Texas and benefit from the clustering of communities. The portfolio is extremely complementary to our existing footprint and provides additional opportunities to achieve operating leverage and synergies. Furthermore, we are pleased to complete our third transaction with HCN and continue to strengthen our relationship.”