The Ensign Group (Nasdaq: ENSG) has significantly expanded its presence in Colorado and Kansas with the acquisition of eight skilled nursing facilities (SNFs) totaling 862 beds. The acquisition includes seven SNFs in Colorado with 760 beds and a 102-bed SNF in Kansas, effective September 1, 2024.
Strategic Growth in Colorado and Kansas
"We are thrilled to continue our recent expansion in Colorado," said Barry Port, CEO of The Ensign Group, in a press release. "These operations are a perfect fit within our existing footprint in the state."
Port emphasized that Ensign remains focused on acquiring both well-performing and struggling skilled nursing, senior living, and other healthcare-related businesses across the United States.
Dave Jorgensen, President of Endura Healthcare, Ensign's Colorado-based subsidiary, expressed excitement about the new additions. "Our team is so excited to add these operations. We can't wait to integrate our experience and culture into these facilities," Jorgensen said.
Occupancy and Market Impact
The newly acquired Colorado facilities have an average July occupancy rate of approximately 72.3%, while the Kansas facility stands at 80.6%, according to estimates by Stephens Inc., based on CMS data. These figures are below Ensign's state averages of 85.3% in Colorado and 88.0% in Kansas but above the broader state industry averages.
Last month, Ensign added 334 SNF beds through acquisitions in Colorado and Iowa, bringing the total number of beds added in 2024 to 1,196. The company's continued expansion has exceeded analyst expectations, with over 2,500 SNF beds added year to date, surpassing the full-year forecast.
Ensign's Expanding Portfolio
With these latest acquisitions, Ensign's portfolio now includes 323 healthcare operations, 29 of which also offer senior living services across 14 states. The company's subsidiaries, including Standard Bearer, own 122 real estate assets, providing a broad range of healthcare services, including skilled nursing, senior living, and rehabilitative therapies.
The acquired facilities will operate under long-term, triple net leases, further solidifying Ensign's position as a leader in the skilled nursing and healthcare services sector.
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