All across the country, senior living providers continue to demonstrate the attractiveness of the sector by snapping up properties to enhance their portfolios and boost their profits. Indeed, growth through acquisitions is increasingly becoming a strategy for many industry participants as reflected by the high rate of M&A activity that has already taken place this year. One of the companies that has clearly embarked on this strategy in order to strengthen its portfolio is the Ensign Group. The Ensign Group and its subsidiaries provide a host of different healthcare services at over 100 facilities, including skilled nursing and assisted living care. Furthermore, so far this year it has repeatedly demonstrated its faith in the value of senior housing assets by making multiple purchases in the space. Other providers and investors that are interested in following Ensign’s lead should continue to look to the successful financing firm Cambridge Realty Capital and the many different options it offers for their capital needs.
One of the Ensign Group’s more recent senior housing purchases is a 230-bed skilled nursing facility in Tucson, Arizona. The name of the facility is the Casas Adobes Post-Acute Rehabilitation Center and the acquisition took effect on May 1. Ensign’s president and CEO, Christopher Christensen expressed his excitement of this purchase with his statement that Ensign is “excited to add a second operation this year to our 15 existing operations in Arizona.” Ensign’s first acquisition in Arizona this year was the Horizon Post-Acute and Rehabilitation Center which it purchased back in March. Mr. Christensen went on to say that “Together with Ensign’s existing operations in the Tucson market, this new addition strengthens our local cluster and will magnify our ability to provide top quality care to the patients and families we serve.” These statements reflect Ensign’s excitement about the possibilities for seniors housing in Arizona, yet Ensign did not stop there; instead, it has continued to make other purchases on the west coast, specifically in California.
Ensign announced just last week that it was purchasing two healthcare facilities in Southern California. A 143-unit assisted living facility in Rosemead, California known as the California Mission Inn and a 59-bed skilled nursing facility known as Mission Care Center that has actually been operated by a subsidiary of Ensign since 2005. The Mission Care Center acquisition already took effect on May 3 and afterwards Mr. Christensen reiterated Ensign’s strategy of growth through acquisitions with his statement that “We hope that these recent acquisitions will add clarity to Ensign’s strategy following the spin-off, which is to continue to acquire and retain the real estate assets for both well-performing and struggling skilled nursing facilities across the United States.” The spin-off Mr. Christensen is referring to is Ensign’s previously announced decision to substantially separate its real estate holdings from its operating business. Following the purchase of the Mission Care Center, Ensign’s portfolio now consists of 122 healthcare facilities, eleven urgent care clinics, eight hospice companies, and ten home health agencies in 11 states, and it continues to look for additional senior housing assets to buy.
Ensign’s strategy of growth through acquisitions is one that’s being explored by many in the industry thanks to consistent demand for senior housing services and low interest rates fueled by the Federal Reserve’s expansionist monetary policy. However, some of these policies are currently being wound down, including the Reserve’s quantitative easing program which analysts believe will be terminated later this year. Before this happens and interest rates increase, senior living providers and others in the space who are interested in taking advantage of today’s low rates and following Ensign’s strategy of growth through acquisitions should contact Cambridge Realty Capital to learn more about the many different financing options it offers.
