Brookdale Announces Completion of Two Previously Announced Portfolio Acquisitions, Increasing the Company's Real Estate Ownership Position
Brookdale Senior Living (NYSE: BKD) has completed two portfolio acquisitions announced in September 2024, marking the final phase of its three-portfolio acquisition plan. The transactions include:
1. Five communities (686 units) from Welltower Inc. for $175 million, featuring 90%+ occupancy across independent living, assisted living, memory care, and skilled nursing units.
2. Twenty-five communities (875 units) from Diversified Healthcare Trust for $135 million, comprising assisted living and memory care units with 80% occupancy.
The $310 million total acquisition was funded through $69 million cash and $241 million in mortgage debt financing. Financing includes a $161 million Ally Bank mortgage loan and $130 million in Freddie Mac loans. By year-end, Brookdale expects to own more than 75% of its consolidated unit count, positioning itself to capitalize on favorable senior living industry dynamics.
Brookdale Senior Living (NYSE: BKD) ha completato due acquisizioni di portafoglio annunciate a settembre 2024, segnando la fase finale del suo piano di acquisizione di tre portafogli. Le transazioni includono:
1. Cinque comunità (686 unità) da Welltower Inc. per 175 milioni di dollari, con un'occupazione superiore al 90% tra unità di vita indipendente, assistita, di cura della memoria e di assistenza specializzata.
2. Venticinque comunità (875 unità) da Diversified Healthcare Trust per 135 milioni di dollari, comprendenti unità di vita assistita e di cura della memoria con un'occupazione dell'80%.
L'acquisizione totale di 310 milioni di dollari è stata finanziata attraverso 69 milioni di dollari in contante e 241 milioni di dollari in finanziamenti ipotecari. Il finanziamento include un prestito ipotecario di 161 milioni di dollari da Ally Bank e 130 milioni di dollari in prestiti Freddie Mac. Entro la fine dell'anno, Brookdale prevede di possedere oltre il 75% del suo conteggio unitario consolidato, posizionandosi per capitalizzare sulle dinamiche favorevoli del settore della vita per anziani.
Brookdale Senior Living (NYSE: BKD) ha completado dos adquisiciones de cartera anunciadas en septiembre de 2024, marcando la fase final de su plan de adquisición de tres carteras. Las transacciones incluyen:
1. Cinco comunidades (686 unidades) de Welltower Inc. por 175 millones de dólares, con una ocupación superior al 90% en unidades de vida independiente, asistencia, cuidado de la memoria y enfermería especializada.
2. Veinticinco comunidades (875 unidades) de Diversified Healthcare Trust por 135 millones de dólares, que comprenden unidades de asistencia y cuidado de la memoria con una ocupación del 80%.
La adquisición total de 310 millones de dólares se financió a través de 69 millones de dólares en efectivo y 241 millones de dólares en financiamiento hipotecario. El financiamiento incluye un préstamo hipotecario de 161 millones de dólares de Ally Bank y 130 millones de dólares en préstamos de Freddie Mac. Para fin de año, Brookdale espera poseer más del 75% de su conteo de unidades consolidado, posicionándose para capitalizar las dinámicas favorables de la industria de vida para ancianos.
브룩데일 시니어 리빙 (NYSE: BKD)는 2024년 9월에 발표된 두 개의 포트폴리오 인수를 완료하였으며, 이는 세 개의 포트폴리오 인수 계획의 마지막 단계입니다. 거래 내용은 다음과 같습니다:
1. 웰타워 주식회사로부터 686개 유닛이 포함된 5개 커뮤니티를 1억 7500만 달러에 인수하였으며, 독립 생활, 지원 생활, 기억 치료 및 숙련된 간호 유닛에서 90% 이상의 점유율을 보이고 있습니다.
2. 다이버시파이드 헬스케어 트러스트로부터 875개 유닛이 포함된 25개 커뮤니티를 1억 3500만 달러에 인수하였으며, 지원 생활 및 기억 치료 유닛에서 80%의 점유율을 보이고 있습니다.
총 3억 1000만 달러의 인수는 6900만 달러의 현금과 2억 4100만 달러의 모기지 부채 자금을 통해 조달되었습니다. 자금 조달에는 1억 6100만 달러의 Ally Bank 모기지 대출과 1억 3000만 달러의 Freddie Mac 대출이 포함됩니다. 연말까지 브룩데일은 통합 유닛 수의 75% 이상을 소유할 것으로 예상하며, 이는 노인 생활 산업의 유리한 역학을 활용할 수 있는 위치에 있습니다.
Brookdale Senior Living (NYSE: BKD) a finalisé deux acquisitions de portefeuille annoncées en septembre 2024, marquant la dernière phase de son plan d'acquisition de trois portefeuilles. Les transactions comprennent :
1. Cinq communautés (686 unités) de Welltower Inc. pour 175 millions de dollars, affichant un taux d'occupation de plus de 90% dans les unités de vie indépendante, de vie assistée, de soins de mémoire et de soins spécialisés.
2. Vingt-cinq communautés (875 unités) de Diversified Healthcare Trust pour 135 millions de dollars, comprenant des unités de vie assistée et de soins de mémoire avec un taux d'occupation de 80%.
L'acquisition totale de 310 millions de dollars a été financée par 69 millions de dollars en espèces et 241 millions de dollars en financement par emprunt hypothécaire. Le financement comprend un prêt hypothécaire de 161 millions de dollars de la part d'Ally Bank et 130 millions de dollars en prêts Freddie Mac. D'ici la fin de l'année, Brookdale s'attend à posséder plus de 75% de son nombre total d'unités consolidées, se positionnant ainsi pour tirer parti des dynamiques favorables de l'industrie des logements pour seniors.
Brookdale Senior Living (NYSE: BKD) hat zwei Portfoliotransaktionen abgeschlossen, die im September 2024 angekündigt wurden, und damit die letzte Phase seines Plans zur Akquisition von drei Portfolios erreicht. Die Transaktionen umfassen:
1. Fünf Gemeinschaften (686 Einheiten) von Welltower Inc. für 175 Millionen Dollar, mit einer Belegung von über 90% in den Bereichen unabhängiges Wohnen, betreutes Wohnen, Gedächtnispflege und Fachpflege.
2. Fünfundzwanzig Gemeinschaften (875 Einheiten) von Diversified Healthcare Trust für 135 Millionen Dollar, bestehend aus betreuten Wohn- und Gedächtnispflegeeinheiten mit einer Belegung von 80%.
Die Gesamtakquisition von 310 Millionen Dollar wurde durch 69 Millionen Dollar in bar und 241 Millionen Dollar in Hypothekenschulden finanziert. Die Finanzierung umfasst ein Hypothekendarlehen von 161 Millionen Dollar von Ally Bank und 130 Millionen Dollar in Freddie Mac-Darlehen. Bis zum Jahresende erwartet Brookdale, mehr als 75% seiner konsolidierten Einheitenzahl zu besitzen, was es ihm ermöglicht, von den günstigen Dynamiken der Seniorenwohnindustrie zu profitieren.
- Acquisition increases owned real estate portfolio to 75% of consolidated unit count
- Welltower portfolio acquisition at significant discount to replacement cost
- High 90%+ occupancy in Welltower portfolio
- Strategic expansion in affluent markets
- Secured favorable financing terms with both fixed and flexible options
- Significant debt increase of $241 million
- Lower 80% occupancy in Diversified Healthcare Trust portfolio
- Substantial cash outlay of $69 million reduces liquidity
Insights
Brookdale's completion of two portfolio acquisitions for
The transaction economics are particularly compelling. The Welltower portfolio (
The financing structure demonstrates sophisticated capital allocation, combining
By increasing owned real estate to
These acquisitions represent a structural competitive advantage for Brookdale within the senior living sector. By converting leased assets to owned real estate, the company gains control of 41 communities that were previously subject to landlord constraints and profit-sharing arrangements. This vertical integration has multiple operational implications beyond the financial benefits.
The portfolio composition reveals strategic depth. The Welltower assets feature a balanced unit mix (270 independent living, 170 assisted living, 152 memory care, 94 skilled nursing) creating complete care continuums within individual communities. This enables residents to age in place while allowing Brookdale to capture increasing care revenue as residents' needs evolve. The Diversified portfolio's smaller communities (ranging from 19-92 units) complement Brookdale's existing footprint while including some high-performers.
The timing aligns with industry consolidation trends, as senior housing operators increasingly seek to control their real estate. By securing these communities now, Brookdale insulates itself from potential rent increases while positioning to capture the full benefit of the demographic wave approaching senior living. The
With 647 communities serving approximately 58,000 residents across 41 states, these acquisitions strengthen Brookdale's position as the nation's largest senior living operator. The strategy to control
"We believe that Brookdale is positioned to create significant value over the next several years as we take advantage of favorable senior living industry dynamics, driven by constrained supply, an aging population, and an escalating need for high-quality, specialized services," said Lucinda ("Cindy") Baier, Brookdale's President and CEO. "Through community ownership, Brookdale can fully benefit from this powerful growth outlook rather than sharing in the value-creation from our operations. We are proud that by year end we expect to own more than
Acquisition Transactions
Closing of Welltower Portfolio Acquisition
The Company acquired five communities (686 units) previously leased from Welltower Inc. for
Closing of Diversified Healthcare Trust Portfolio Acquisition
The Company acquired 25 communities (875 units) previously leased from Diversified Healthcare Trust for
Financing Transactions
The Company funded the combined
Ally Bank Mortgage Loan
The Company obtained
Freddie Mac Mortgage Loans
The Company obtained an aggregate of
"We are pleased to have once again secured agency financing to support our business needs and strategic initiatives," said Dawn Kussow, Brookdale's Executive Vice President and Chief Financial Officer. "We appreciate Ally Bank, Freddie Mac, and CBRE for these financings and are grateful for their ongoing partnership."
ABOUT BROOKDALE SENIOR LIVING
Brookdale Senior Living Inc. is the nation's premier operator of senior living communities. With 647 communities across 41 states and the ability to serve approximately 58,000 residents as of December 31, 2024, Brookdale is committed to its mission of enriching the lives of seniors through compassionate care, clinical expertise, and exceptional service. The Company, through its affiliates, operates independent living, assisted living, memory care, and continuing care retirement communities, offering tailored solutions that help empower seniors to live with dignity, connection, and purpose. Leveraging deep expertise in healthcare, hospitality, and real estate, Brookdale creates opportunities for wellness, personal growth, and meaningful relationships in settings that feel like home. Guided by its four cornerstones of passion, courage, partnership, and trust, Brookdale is committed to delivering exceptional value and redefining senior living for a brighter, healthier future. Brookdale's stock trades on the New York Stock Exchange under the ticker symbol BKD. For more information, visit brookdale.com or connect with Brookdale on Facebook or YouTube.
SAFE HARBOR
Certain statements in this press release and the associated earnings call may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to various risks and uncertainties and include all statements that are not historical statements of fact and those regarding the Company's intent, belief, or expectations. Forward-looking statements are generally identifiable by use of forward-looking terminology such as "may," "will," "should," "could," "would," "potential," "intend," "expect," "endeavor," "seek," "anticipate," "estimate," "believe," "project," "predict," "continue," "plan," "target," or other similar words or expressions, and include statements regarding the Company's expected financial and operational results. These forward-looking statements are based on certain assumptions and expectations, and the Company's ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Although the Company believes that expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that its assumptions or expectations will be attained and actual results and performance could differ materially from those projected. Factors which could have a material adverse effect on the Company's operations and future prospects or which could cause events or circumstances to differ from the forward-looking statements include, but are not limited to, events which adversely affect the ability of seniors to afford resident fees, including downturns in the economy, housing market, consumer confidence, or the equity markets and unemployment among resident family members; the effects of senior housing construction and development, lower industry occupancy, and increased competition; conditions of housing markets, regulatory changes, acts of nature, and the effects of climate change in geographic areas where the Company is concentrated; terminations of the Company's resident agreements and vacancies in the living spaces it leases; changes in reimbursement rates, methods, or timing under governmental reimbursement programs including the Medicare and Medicaid programs; failure to maintain the security and functionality of the Company's information systems, to prevent a cybersecurity attack or breach, or to comply with applicable privacy and consumer protection laws, including HIPAA; the Company's ability to complete its capital expenditures in accordance with its plans; the Company's ability to identify and pursue development, investment, and acquisition opportunities and its ability to successfully integrate acquisitions; competition for the acquisition of assets; the Company's ability to complete pending or expected disposition, acquisition, or other transactions on agreed upon terms or at all, including in respect of the satisfaction of closing conditions, the risk that regulatory approvals are not obtained or are subject to unanticipated conditions, and uncertainties as to the timing of closing, and the Company's ability to identify and pursue any such opportunities in the future; risks related to the implementation of the Company's strategy, including initiatives undertaken to execute on the Company's strategic priorities and their effect on its results; the impacts of the COVID-19 pandemic, including the pace and consistency of recovery from the pandemic and any resurgence or variants of the disease; limits on the Company's ability to use net operating loss carryovers to reduce future tax payments; delays in obtaining regulatory approvals; disruptions in the financial markets or decreases in the appraised values or performance of the Company's communities that affect the Company's ability to obtain financing or extend or refinance debt as it matures and the Company's financing costs; the Company's ability to generate sufficient cash flow to cover required interest, principal, and long-term lease payments and to fund its planned capital projects; the effect of any non-compliance with any of the Company's debt or lease agreements (including the financial or other covenants contained therein), including the risk of lenders or lessors declaring a cross default in the event of the Company's non-compliance with any such agreements and the risk of loss of the Company's property securing leases and indebtedness due to any resulting lease terminations and foreclosure actions; the inability to renew, restructure, or extend leases, or exercise purchase options at or prior to the end of any existing lease term; the effect of the Company's indebtedness and long-term leases on the Company's liquidity and its ability to operate its business; increases in market interest rates that increase the costs of the Company's debt obligations; the Company's ability to obtain additional capital on terms acceptable to it; departures of key officers and potential disruption caused by changes in management; increased competition for, or a shortage of, associates, wage pressures resulting from increased competition, low unemployment levels, minimum wage increases and changes in overtime laws, and union activity; environmental contamination at any of the Company's communities; failure to comply with existing environmental laws; an adverse determination or resolution of complaints filed against the Company, including putative class action complaints; negative publicity with respect to any lawsuits, claims, or other legal or regulatory proceedings; costs to respond to, and adverse determinations resulting from, government inquiries, reviews, audits, and investigations; the cost and difficulty of complying with increasing and evolving regulation, including new disclosure obligations; changes in, or its failure to comply with, employment-related laws and regulations; the risks associated with current global economic conditions and general economic factors on the Company and the Company's business partners such as inflation, commodity costs, fuel and other energy costs, competition in the labor market, costs of salaries, wages, benefits, and insurance, interest rates, tax rates, geopolitical tensions or conflicts, and uncertainty surrounding a new presidential administration, the impact of seasonal contagious illness or other contagious disease in the markets in which the Company operates; actions of activist stockholders, including a proxy contest; as well as other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission ("SEC"), including those set forth in the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. When considering forward-looking statements, you should keep in mind the risk factors and other cautionary statements in such SEC filings. Readers are cautioned not to place undue reliance on any of these forward-looking statements, which reflect management's views as of the date of this press release and/or associated earnings call. The Company cannot guarantee future results, levels of activity, performance or achievements, and, except as required by law, it expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements contained in this press release and/or associated earnings call to reflect any change in the Company's expectations with regard thereto or change in events, conditions, or circumstances on which any statement is based.
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SOURCE Brookdale Senior Living Inc.
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