Brookdale Senior Living to acquire 41 leased communities, sees accretion

Brookdale Senior Living (BKD) announced that in a financing led by Deerfield Management, the company is addressing 83% of all 2026 debt maturities and is securing capital to support immediately accretive acquisition opportunities. The company also announced the successful refinancing of its 2025 agency debt maturity at a favorable rate. The company has entered into definitive agreements to acquire three portfolios of senior living communities that are currently leased by the Company. Through ownership of these communities, the company will gain portfolio management flexibility that is not present in a leased structure, providing additional opportunities to further enhance shareholder value. These transactions are expected to close by year-end, subject to the satisfaction of customary closing conditions for real estate transactions. The company has entered into a definitive agreement to acquire 11 senior living communities from a joint venture between Welltower and its joint venture partners for a purchase price of $300M. As part of this transaction, the company will assume $195M of existing 4.92% fixed rate agency debt which is scheduled to mature in March 2027. Currently, these communities are held in a triple-net lease with annualized current cash rent payments of $22M and a current maturity of August 31, 2028. This portfolio of communities is largely on the west coast, including several communities in and around Seattle as well as a Bay Area community. The portfolio is comprised of 470 independent living units, 723 assisted living units, and 36 memory care units with weighted average portfolio occupancy of approximately 80%. In 2019, these communities operated at a weighted average occupancy of 88%, reflecting an opportunity to enhance long-term value creation for the benefit of the Company and its shareholders. The company has entered into a definitive agreement to acquire five senior living communities from Welltower for a purchase price of $175M. Currently, these communities are held in a triple-net lease with annualized current cash rent payments of $13M and a current maturity of December 31. This portfolio of communities is largely located in affluent markets, including Nashville, Overland Park and Denver. In total, the portfolio is comprised of 270 independent living units, 170 assisted living units, 152 memory care units, and 94 skilled nursing units with weighted average portfolio occupancy greater than 90%. The acquisition purchase price, including the benefit of a favorable purchase option discount, also reflects a significant discount to the company’s estimate of replacement cost. The company has entered into a definitive agreement to acquire 25 senior living communities from Diversified Healthcare Trust (DHC) for a purchase price of $135M. Currently, these communities are held in a triple-net lease with annualized current cash rent payments of $10M and a current maturity of December 31, 2032. This portfolio’s communities are diversely located, range in size from 19 units to 92 units, and include a total of 556 assisted living units and 319 memory care units with weighted average portfolio occupancy of approximately 80%.