The Ensign Group Announces Expansion in Tennessee, Agrees to Add Its First Operation in Alabama
The Ensign Group (ENSG) has announced plans to expand its operations by adding eight skilled nursing facilities in Tennessee and its first operation in Alabama. Six facilities will be jointly owned by CareTrust REIT and a private joint venture investor under new long-term triple net master leases, while three will be purchased by Ensign's subsidiary, Standard Bearer Healthcare REIT. The expansion will increase Ensign's Tennessee presence from three to eleven locations. Upon completion, Ensign's portfolio will encompass 332 healthcare operations across 15 states, including 125 owned real estate assets.
The Ensign Group (ENSG) ha annunciato piani per espandere le sue operazioni aggiungendo otto strutture di assistenza specializzata nel Tennessee e la sua prima operazione in Alabama. Sei strutture saranno di proprietà congiunta di CareTrust REIT e di un investitore privato in joint venture sotto nuovi contratti di locazione master a lungo termine triple net, mentre tre saranno acquistate dalla sussidiaria di Ensign, Standard Bearer Healthcare REIT. L'espansione porterà la presenza di Ensign nel Tennessee da tre a undici sedi. Al termine dell'espansione, il portafoglio di Ensign comprenderà 332 operazioni sanitarie in 15 stati, inclusi 125 beni immobili di proprietà.
The Ensign Group (ENSG) ha anunciado planes para expandir sus operaciones agregando ocho instalaciones de enfermería especializada en Tennessee y su primera operación en Alabama. Seis instalaciones serán de propiedad conjunta de CareTrust REIT y un inversor privado bajo un nuevo contrato de arrendamiento maestro triple neto a largo plazo, mientras que tres serán compradas por la subsidiaria de Ensign, Standard Bearer Healthcare REIT. La expansión aumentará la presencia de Ensign en Tennessee de tres a once ubicaciones. Al finalizar, el portafolio de Ensign abarcará 332 operaciones de atención médica en 15 estados, incluidos 125 activos inmobiliarios de su propiedad.
엔사인 그룹 (ENSG)은 테네시에서 8개의 숙련된 간호 시설을 추가하고 알라바마에서 첫 번째 운영을 시작할 계획을 발표했습니다. 6개 시설은 CareTrust REIT와 사설 합작 투자자가 공동 소유하며 새로운 장기 순수 임대 계약 하에 운영되며, 3개 시설은 엔사인의 자회사인 Standard Bearer Healthcare REIT에 의해 구매될 것입니다. 이번 확장을 통해 엔사인은 테네시 내 사업체를 3곳에서 11곳으로 늘리게 됩니다. 완공 후, 엔사인의 포트폴리오는 15개 주에서 332개의 의료 운영을 포함하여 125개의 부동산 자산을 보유하게 됩니다.
The Ensign Group (ENSG) a annoncé des projets d'expansion de ses opérations en ajoutant huit établissements de soins infirmiers spécialisés dans le Tennessee et sa première opération en Alabama. Six établissements seront détenus en commun par CareTrust REIT et un investisseur privé par le biais de nouveaux baux masters à long terme en triple net, tandis que trois seront achetés par la filiale d'Ensign, Standard Bearer Healthcare REIT. L'expansion portera la présence d'Ensign dans le Tennessee de trois à onze emplacements. Une fois l'expansion terminée, le portefeuille d'Ensign comprendra 332 opérations de santé dans 15 États, y compris 125 actifs immobiliers détenus.
The Ensign Group (ENSG) hat Pläne angekündigt, seine Aktivitäten durch die Hinzufügung von acht spezialisierten Pflegeeinrichtungen in Tennessee und dem ersten Standort in Alabama zu erweitern. Sechs Einrichtungen werden gemeinschaftlich von CareTrust REIT und einem privaten Joint-Venture-Investor unter neuen langfristigen Triple-Net-Mietverträgen besessen, während drei von Ensigns Tochtergesellschaft, Standard Bearer Healthcare REIT, erworben werden. Die Expansion wird die Präsenz von Ensign in Tennessee von drei auf elf Standorte erhöhen. Nach Abschluss umfasst das Portfolio von Ensign 332 Gesundheitsbetriebe in 15 Bundesstaaten, einschließlich 125 Eigentumsimmobilien.
- Significant expansion adding 9 new facilities to portfolio
- Strategic market penetration in Tennessee, growing from 3 to 11 locations
- Partnership with CareTrust REIT for 6 facilities, reducing capital requirements
- Geographic expansion into new state (Alabama)
- Addition of owned real estate assets through Standard Bearer Healthcare REIT
- Transaction subject to regulatory approvals and closing conditions
- Increased lease obligations through new triple net master leases
Insights
This strategic expansion marks a significant move for Ensign Group, adding 8 skilled nursing facilities in Tennessee and their first operation in Alabama. The deal structure is particularly noteworthy, with 6 facilities being jointly owned by CareTrust REIT and a private investor, while 3 facilities will be purchased by Ensign's captive REIT. The transaction will expand Ensign's portfolio to 332 healthcare operations across 15 states, including 125 owned real estate assets.
The clustering strategy in Tennessee, growing from 3 to 11 facilities, should create operational synergies and economies of scale. The partnership with CareTrust REIT through triple-net master leases provides stable, long-term revenue streams while minimizing operational risk. This expansion aligns with industry consolidation trends and demonstrates Ensign's ability to execute both operating lease and ownership strategies in their growth model.
This expansion significantly strengthens Ensign's market position in the Southeast region. The clustering strategy in Tennessee is particularly valuable for operational efficiency, staff recruitment and local market leverage. Entering Alabama represents a strategic foothold in a new market with growth potential. The mix of owned and leased properties provides operational flexibility while maintaining strong relationships with major healthcare REITs.
The transaction's structure, combining both property ownership and lease arrangements, demonstrates sophisticated capital allocation. The company's ability to simultaneously execute multiple facility acquisitions while maintaining operational excellence indicates strong management capabilities and scalable systems. This expansion should contribute positively to Ensign's market share and operational leverage in the region.
SAN JUAN CAPISTRANO, Calif., Oct. 29, 2024 (GLOBE NEWSWIRE) -- The Ensign Group, Inc. (Nasdaq: ENSG), the parent company of the EnsignTM group of companies, which invest in and provide skilled nursing and senior living services, physical, occupational and speech therapies, other rehabilitative and healthcare services, and real estate, announced today that it has agreed to add eight skilled nursing operations in the state of Tennessee and one in Alabama, subject to the completion of certain regulatory approvals and other closing conditions. Six of these operations will be jointly owned by CareTrust REIT, Inc. (NYSE: CTRE, “CareTrust”) and a large, private joint venture investor and will transition to Ensign affiliated operating companies subject to a new, long-term triple net master leases, and three will be purchased by Standard Bearer Healthcare REIT, Inc., Ensign’s captive real estate subsidiary. All nine operations will be operated by Ensign affiliated operating companies. It is anticipated that the transaction will be effective in the next few months.
Barry Port, Ensign’s Chief Executive officer commented, “We are very excited to add eight operations to our three existing locations in Tennessee, which is one of our newest states, bringing our total operations in Tennessee to 11. Our leadership team in Tennessee has been laying the foundation for this growth for several years and these operations are a perfect fit to form local clusters, which are a key to our scalable growth model. At the same time, one of our long-time leaders is relocating to take the first step in establishing a new market in a state we’ve been targeting for some time. We look forward to working together with the outstanding leaders and teams already in place in these operations to build on the strong clinical and operational reputations they have earned in their communities.”
Commenting on the news, Dave Sedgwick, President and CEO of CareTrust, said, “This transaction provides an extraordinary opportunity for us and Ensign to expand our presence in two states we are very excited about. We couldn’t be more thrilled about deepening our relationship with one of the industry’s best-in-class operators and look forward to working with them more in the near- and long- term future.”
Upon closing this transaction, Ensign’s growing portfolio will consist of 332 healthcare operations, 30 of which also include senior living operations, across 15 states. Ensign will also own 125 real estate assets, 95 of which it operates. Mr. Port reaffirmed that the organization is actively seeking several other transactions to acquire real estate and to lease both well-performing and struggling skilled nursing, senior living and other healthcare related businesses throughout the United States.
About Ensign(TM)
The Ensign Group, Inc.'s independent subsidiaries provide a broad spectrum of skilled nursing and senior living services, physical, occupational and speech therapies and other rehabilitative and healthcare services at 323 healthcare facilities in Arizona, California, Colorado, Idaho, Iowa, Kansas, Nebraska, Nevada, South Carolina, Tennessee, Texas, Utah, Washington and Wisconsin. As part of its investment strategy, the Company will also acquire, lease and own healthcare real estate to service the post-acute care continuum through acquisition and investment opportunities in healthcare properties. Ensign’s new business venture operating subsidiaries also offer several other post-acute-related services, including mobile x-ray, emergency and non-emergency transportation services, long-term care pharmacy and other consulting services also across several states. More information about Ensign is available at http://www.ensigngroup.net.
About CareTrust
CareTrust REIT, Inc. is a self-administered, publicly-traded real estate investment trust engaged in the ownership, acquisition, development and leasing of skilled nursing, seniors housing and other healthcare-related properties. With a nationwide portfolio of long-term net-leased properties, and a growing portfolio of quality operators leasing them, CareTrust REIT is pursuing both external and organic growth opportunities across the United States. More information about CareTrust REIT is available at www.caretrustreit.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
This press release contains forward-looking statements that are based on management’s current expectations, assumptions and beliefs about its business, financial performance, operating results, the industry in which it operates and other future events. Forward-looking statements can often be identified by words such as "anticipates," "expects," "intends," "plans," "predicts," "believes," "seeks," "estimates," "may," "will," "should," "would," "could," "potential," "continue," "ongoing," similar expressions, and variations or negatives of these words. These forward-looking statements include, but are not limited to, statements regarding growth prospects, future operating and financial performance, and acquisition activities. They are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause actual results to materially and adversely differ from those expressed in any forward-looking statement.
These risks and uncertainties relate to the Company’s business, its industry and its common stock and include: reduced prices and reimbursement rates for its services; its ability to acquire, develop, manage or improve operations, its ability to manage its increasing borrowing costs as it incurs additional indebtedness to fund the acquisition and development of operations; its ability to access capital on a cost-effective basis to continue to successfully implement its growth strategy; its operating margins and profitability could suffer if it is unable to grow and manage effectively its increasing number of operations; competition from other companies in the acquisition, development and operation of facilities; its ability to defend claims and lawsuits, including professional liability claims alleging that our services resulted in personal injury, and other regulatory-related claims; and the application of existing or proposed government regulations, or the adoption of new laws and regulations, that could limit its business operations, require it to incur significant expenditures or limit its ability to relocate its operations if necessary. Additionally, our business and operations continue to be impacted by the unprecedented nature of the changes in the regulations and environment, as such, we are unable to predict the full extent and duration of the financial impact of these changes on our business, financial condition and results of operations. Therefore, our actual results could differ materially and adversely from those expressed in any forward-looking statements as a result of various factors. Readers should not place undue reliance on any forward-looking statements and are encouraged to review the Company’s periodic filings with the Securities and Exchange Commission, including its Form 10-Q and 10-K, for a more complete discussion of the risks and other factors that could affect Ensign’s business, prospects and any forward-looking statements. Except as required by the federal securities laws, Ensign does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changing circumstances or any other reason after the date of this press release.
Contact Information
The Ensign Group, Inc., (949) 487-9500, ir@ensigngroup.net
SOURCE: The Ensign Group, Inc.
FAQ
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