Capital Senior Living Acquires Five Communities for $49.4 Million

Capital Senior Living Corporation (NYSE:CSU) recently completed the acquisition of five senior living communities for a purchase price of $49.4 million.

The communities, located in Texas and Indiana, offer levels of care that include independent living, assisted living, and memory care.

CSU financed the communities with approximately $37.5 million of 10-year, fixed rate, non-recourse debt with a blended interest rate of 4.71%.

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With the acquisition, CSU increased its cash from facility operations (CFFO) by $2.6 million, or $0.10 per share. The transaction also increases annual revenue by approximately $12.8 million.

The five communities have an average occupancy rate of 94%, with monthly average rents of about $3,200.

“The exceptional returns generated by these acquisitions complement the positive results we are achieving in our operations with increases in occupancy and average monthly rents,” said Lawrence A. Cohen, CEO of Capital Senior Living. “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.”

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In addition to these communities, CSU has completed due diligence on more transactions consisting of high-quality senior living communities in regions where is has existing operations, and subject to customary closing conditions, plans to acquire these communities in the second quarter of 2012.

Written by Alyssa Gerace

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