Capital Senior Living Corporation (NYSE:CSU) announced Monday that it has completed the acquisition of 12 leased communities from Signature Assisted Living of Texas, LLC. The 12 leased communities are assisted living and memory care facilities located in Texas.
The communities are owned by Health Care REIT, Inc. (NYSE:HCN) and Capital Senior Living has replaced Signature as the tenant under a new lease agreement. The Signature communities have approximately 677 units and include 532 units of assisted living and 145 units of memory care, with a combined capacity of 764 residents. In July of this year, occupancy at the combined communities was approximately 92%. The 12 Signature communities will bring to 29 the total number of communities CSU operates in Texas.
“This transaction is very strategic and adds tremendous value for our shareholders by adding significant top-line growth as well as solid cash flow and earnings,” commented Lawrence A. Cohen, Chief Executive Officer of the Company. “On an annual basis, the Signature communities are expected to increase the Company’s CFFO by approximately $2.8 million or $0.10 per share. With this transaction, the Company will operate a larger platform in Texas with the opportunity to achieve operating leverage and synergies across the combined Texas portfolio.”