Capital Senior Living Corporation (NYSE:CSU) recently announced a $30 million acquisition of three senior living communities, located in North and South Carolina.
The levels of care offered in the portfolio include independent living, assisted living and memory care. The portfolio was financed with approximately $22 million of 10-year fixed rate debt that is non-recourse to Capital Senior Living, with an interest rate of 4.92%.
The three communities have an average occupancy of 92%, with average monthly rents of approximately $2,900. The acquisition will increase annual revenue by approximately $8 million; additional cash from facility operations is at $1.4 million, or $0.05 per share, with incremental earnings of $0.7 million, or $0.03 per share.
Capital Senior Living is also conducting due diligence on additional transactions consisting of high-quality senior living communities in other locations with existing extensive operations; subject to the completion of due diligence, it expects to acquire these communities late in the fourth quarter of 2011.
“These transactions 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 Capital Senior Living, in a statement. “The exceptional returns generated by this acquisition 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.”
Written by Alyssa Gerace