Seeking to tighten its grip on a splintered skilled-nursing facilities market, Care Capital Properties announced Wednesday that it has acquired several properties in Shreveport, La.
Chicago-based Care Capital Properties, a newly spun-off company from real estate investment trust giant Ventas, is acquiring eight skilled-nursing facilities and one assisted-living facility. It's also entered into a long-term triple-net lease with Dallas-based operator Senior Care Centers to operate the acquired portfolio.
Care Capital bought the properties for approximately $190 million and made a $20 million five-year fully amortizing loan to Senior Care Centers, resulting in a total transaction value of $210 million.
The deal shows that Care Capital Properties management has been able to execute on the plan they laid out and gives the company credibility, said Kevin Tyler, a healthcare REIT analyst at Green Street Advisors, a consulting firm based in Newport Beach, Calif.
Care Capital Partners has identified a $450 million external growth pipeline. Care Capital Partners could close another $200 million worth of deals in the coming months, Tyler said.
Senior Care Centers also announced Wednesday that it acquired a rehabilitation therapy company, four hospice agencies and an interest in an affiliated pharmacy provider.
“CCP is pleased to be able to grow with SCC, one of our leading operators. This transaction is an excellent illustration of our strategy to provide capital to our existing customers to help them expand their business,” said Raymond Lewis, CEO of Care Capital Partners.
Senior Care Centers will be managing properties that contain a total of 1,174 beds, with an average occupancy rate of approximately 88%.
“With this acquisition, we are positioned to be the leading full-service post-acute services provider in the Shreveport market. We will continue to uphold Senior Care standards in Louisiana as we strive to meet and exceed patient expectations,” said Mark McKenzie, president and CEO of Senior Care Centers.
Healthcare REITs such as Care Capital Properties and Ventas continue to be a boon for investors. At 5.85% as of Sept. 1, healthcare REITS led all other real estate property sectors in dividend yield listed on the FTSE NAREIT U.S. Real Estate Index.
Shares of Care Capital Partners debuted on the New York Stock Exchange on Aug. 18. As of 1:07 p.m. Wednesday, Care Capital Properties stock traded at $31.06 per share and was up 0.62%.
