Emeritus Corporation (NYSE: ESC) recently released its third quarter financial results that showed an increase in revenues of 10% to $250 million compared to the same period in 2009. The company stated that the increase was driven on rate and occupancy increases at its communities. The same community average monthly revenue per occupied unit improved by 3.5% to $3,798 and its same community average occupancy increased 30 basis points to 87.9%. during the quarter. The company’s net loss for the quarter was $13.6 million compared to a loss of $15.9 million in third quarter 2009.
“Our solid performance has continued due to the strong underlying fundamentals of our need-driven business, along with solid execution from our entire organization,” commented Granger Cobb, President and Co-Chief Executive Officer. “On the consolidation front, we are pleased with the initial integration of the recently acquired Sunwest communities and are confident that the additional 27 leased communities from HCP in the fourth quarter will likewise be incorporated into our portfolio efficiently and effectively.”
Emeritus also has priced a previously announced public offering of 5,000,000 shares of its common stock at a public offering price of $18.25 per share. 4,000,000 shares of common stock will be sold by Emeritus and 1,000,000 shares will be sold by existing shareholders. The company will use the proceeds from the offering to pay the $13 million cash portion of the purchase price of its previously announced acquisition of the assets of Randall Weston and Weston Group, Inc., to make an aggregate repayment of $14.2 million of the outstanding principal of two loans owed to Ventas Realty, Limited Partnership, and for other general corporate purposes.