Brookdale Senior Living (NYSE: BKD) dealmaking tendencies in late 2019 have carried over into 2020. The Brentwood, Tennessee-based senior housing owner and operator exercised its option to acquire eight assisted living communities in three states from National Health Investors (NYSE: NHI) for $39.26 million.
The acquisition is the latest in a steady stream of deals for Brookdale dating back to October 2019, when the operator assumed ownership of an 18-property portfolio it previously leased from Irvine, California-based health care real estate investment trust HCP (NYSE: HCP) — now known as Healthpeak (NYSE: PEAK) — for $405 million. The deal was the most notable of several between Brookdale and the REIT, which included some lease restructurings, the termination of others and an agreement for Healthpeak to acquire Brookdale’s joint venture interest in 12 entry-fee CCRCs for $277 million in net proceeds.
Under the leadership of CEO Cindy Baier, Brookdale has spent more than two years reshaping its portfolio through targeted acquisitions and dispositions, as well as restructuring its lease arrangements with its three largest REIT partners. Brookdale set target goals of an 89.5% average occupancy rate for its consolidated, same-community portfolio, and 7% net operating income (NOI) compound annual growth rate, through 2024.
Brookdale’s owned communities now account for the majority of its consolidated portfolio. “This sets the foundation for a bright future,” Baier said during Q3 2019 earnings call last November.
Murfreesboro, Tennessee-based NHI spent 2019 restructuring its portfolio, as well, in an effort put its operating partners in better positions to succeed. It signed a lease amendment with Winter Park, Florida-based Holiday Retirement; expanded its relationship with Bonita Springs-based Discovery Senior Living by acquiring six senior housing communities totaling 596 units for $128 million in May; and paid special attention to reversing the fortunes of its largest assisted living tenant, Bickford Senior Living.
As of time of publication, Brookdale declined to comment further on the deal to Senior Housing News. NHI did not respond to a request for comment from SHN.