Capital Senior Living Corporation recently reached a significant milestone with the acquisition of its 100th senior living community and is in the process of completing the purchase of another one for a combined $32.8 million.
The communities are in Missouri and Ohio and offer independent living, assisted living, and memory care with an average occupancy rate of 91%. They are being financed with approximately $24.6 million of 10-year fixed rate debt that is non-recourse to Capital Senior Living with a blended interest rate of 4.40%.
The company’s strategy is to concentrate high-quality acquisitions in existing markets that generate “meaningful increases” in cash from facility operations (CFFO) and earnings.
“We take great pride in achieving this milestone of 100 communities for the Company, our residents and our shareholders,” said CEO Lawrence A. Cohen. “These acquisitions continue the successful execution of our strategic plan for accretive growth and significantly enhance shareholder value.”
With the closing of these two communities, Capital Senior Living will have completed the acquisitions of 17 communities in 2012 for a total of $181.3 million. The properties are expected to generate $0.34 of CFFO and 18% cash-on-cash return on invested capital in the first 12 months of ownership.
Written by Alyssa Gerace