Sonida Senior Living (NYSE: SNDA) is planning to acquire an eight-property senior living portfolio in Florida and South Carolina for $103 million.
The acquisition, announced in a press release Thursday, includes properties “located in attractive submarkets” and adds to the company’s footprint in Florida and South Carolina. The portfolio in total spans 555 units, offering assisted living and memory care services.
“With this planned acquisition, Sonida will further broaden its high-quality and regionally-focused real estate portfolio with newer vintage communities in mid-to-large metropolitan areas with favorable growth prospects,” said Brandon Ribar, Sonida’s president and CEO. “By successfully integrating Sonida’s best-in-class operating platform into these communities, and with occupancy growth, ongoing rent rate improvement, and effective expense management, these investments can ultimately generate meaningful value creation for our shareholders.”
The portfolio has an average age of five years and was acquired at a per-unit price of $185,000. Occupancy for the portfolio is approximately 83%, with an average revenue per occupied room of over $6,000.
This brings Sonida’s total operating portfolio to 91 communities, with the acquisition set to close in the late third or fourth quarter of this year, the company said in a news release.
Thursday’s acquisition comes as leadership sees a path to 90% occupancy, with growth opportunities on the horizon and “an opportunity to grow” margins going forward, Ribar told SHN earlier this week following the company’s second quarter earnings call.
Also on Thursday, Sonida announced a public offering of 4 million shares of common stock to purchase 600,000 additional shares of common stock using $102.9 million of the net proceeds to fund the purchase of the recent acquisition.
As of Thursday at market close, Sonida stock rose about 10.5% to rest at $32 per share.
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