Ensign Group announces acquisition of multiple skilled nursing facilities in Texas, expanding its healthcare portfolio to 334 operations.
Quiver AI Summary
The Ensign Group, Inc. announced the successful acquisition of real estate for several skilled nursing facilities in Texas through its captive real estate company, Standard Bearer Healthcare REIT, Inc., effective January 31, 2025. The facilities include Beacon Harbor Healthcare & Rehabilitation, Pleasant Manor Healthcare & Rehabilitation, Rowlett Health & Rehabilitation Center, and Crestwood Health & Rehabilitation Center. These facilities, previously operated under third-party leases, will continue to be managed by Ensign-affiliated companies under long-term triple net leases. In a separate transaction on February 1, 2025, Ensign also acquired the real estate and operations of Mesquite Post Acute Care, a 120-bed skilled nursing facility in Lubbock, Texas. These acquisitions expand Ensign's portfolio to 334 healthcare operations across 15 states, with plans for continued growth in the skilled nursing and senior living sectors.
Potential Positives
- The acquisition of multiple skilled nursing facilities and a healthcare campus enhances Ensign's portfolio, expanding its operations to 334 healthcare facilities across 15 states.
- Standard Bearer Healthcare REIT's exercise of purchase options reflects confidence in the strong financial and cultural performance of the acquired facilities, indicating potential for value creation.
- These strategic acquisitions demonstrate Ensign's ongoing commitment to growth and expansion in the healthcare sector, as they actively seek opportunities to acquire both well-performing and struggling facilities.
- With 134 owned real estate assets, the acquisition further reinforces Ensign's position in the healthcare real estate market, allowing for continued operational growth and financial stability.
Potential Negatives
- The acquisition of multiple skilled nursing facilities could indicate a reliance on real estate transactions for growth, raising concerns about the company's operational strategy and potential vulnerability in the healthcare market.
- While the press release highlights strong financial performance of the acquired facilities, it does not address any potential challenges or risks associated with the integration of these new assets into their existing operations.
- The focus on acquiring more real estate and seeking struggling healthcare businesses may imply that the company is not able to achieve growth solely through organic means, potentially affecting investor confidence.
FAQ
What recent acquisitions did The Ensign Group announce?
The Ensign Group announced the acquisition of several skilled nursing facilities and healthcare campus in Texas, effective January 31, 2025.
How many facilities are now part of Ensign's portfolio?
With these acquisitions, Ensign's portfolio grows to 334 healthcare operations across 15 states.
What services does The Ensign Group provide?
The Ensign Group offers skilled nursing, senior living services, therapies, and various rehabilitative healthcare services.
Who operates the newly acquired facilities?
The newly acquired facilities will continue to be operated by independent operating subsidiaries of Ensign.
What is the strategic goal behind these acquisitions?
These acquisitions demonstrate Ensign's commitment to pursue growth opportunities and enhance both operations and real estate value.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$ENSG Insider Trading Activity
$ENSG insiders have traded $ENSG stock on the open market 10 times in the past 6 months. Of those trades, 0 have been purchases and 10 have been sales.
Here’s a breakdown of recent trading of $ENSG stock by insiders over the last 6 months:
- BARRY PORT (Chief Executive Officer) has made 0 purchases and 4 sales selling 14,118 shares for an estimated $2,080,200.
- DAREN SHAW has made 0 purchases and 3 sales selling 4,000 shares for an estimated $574,058.
- SWATI BARGOTRA ABBOTT sold 1,000 shares for an estimated $152,450
- BARRY M SMITH sold 700 shares for an estimated $93,401
- ANN SCOTT BLOUIN sold 375 shares for an estimated $58,241
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$ENSG Hedge Fund Activity
We have seen 241 institutional investors add shares of $ENSG stock to their portfolio, and 203 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- BLACKROCK, INC. removed 1,919,591 shares (-21.3%) from their portfolio in Q3 2024, for an estimated $276,075,577
- CREWE ADVISORS LLC removed 1,090,266 shares (-98.2%) from their portfolio in Q4 2024, for an estimated $144,852,740
- FULLER & THALER ASSET MANAGEMENT, INC. removed 928,791 shares (-40.6%) from their portfolio in Q3 2024, for an estimated $133,578,721
- WASATCH ADVISORS LP removed 726,573 shares (-17.9%) from their portfolio in Q3 2024, for an estimated $104,495,728
- FMR LLC added 593,779 shares (+42.3%) to their portfolio in Q3 2024, for an estimated $85,397,295
- GOLDMAN SACHS GROUP INC added 395,753 shares (+177.5%) to their portfolio in Q3 2024, for an estimated $56,917,196
- JANE STREET GROUP, LLC added 322,865 shares (+618.3%) to their portfolio in Q3 2024, for an estimated $46,434,444
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
SAN JUAN CAPISTRANO, Calif., Feb. 03, 2025 (GLOBE NEWSWIRE) -- The Ensign Group, Inc. (Nasdaq: ENSG), the parent company of the Ensign™ 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 its captive real estate company, Standard Bearer Healthcare REIT, Inc. exercised a purchase option to acquire the real estate of the following skilled nursing facilities and healthcare campus effective as of January 31, 2025:
- Beacon Harbor Healthcare & Rehabilitation, a 190-bed skilled nursing facility located in Rockwall, Texas;
- Pleasant Manor Healthcare & Rehabilitation , a 126-bed skilled nursing facility located in Waxahachie, Texas;
- Rowlett Health & Rehabilitation Center , a 150-bed skilled nursing facility located in Rowlett, Texas; and
- Crestwood Health & Rehabilitation Center , a healthcare campus with 112 skilled nursing beds and 36 assisted living units located in Wills Point, Texas .
Each of these operations have been operated by an Ensign-affiliated company under two third-party leases with purchase options since 2019. These facilities will continue to be operated by independent operating subsidiaries of Ensign and subject to long-term triple net leases with Standard Bearer. “We have been anxiously waiting to exercise the purchase options on these leased operations,” said Chad Keetch, Ensign's Chief Investment Officer. “These operations are already strong performers both culturally and financially, and we still see tremendous upside in each of them. As these operations continue to mature, we expect to create even more value in both the operations and the real estate,” he added.
“This acquisition showcases one of the many avenues available to Standard Bearer for growth. Where possible, we will continue to use our reputation as a top-notch operator to obtain purchase options in our leases, which allows us to grow our operations while also letting us capture the upside created in the real estate,” Keetch said.
In a separate transaction effective February 1, 2025, Ensign announced that it had acquired the real estate and operations to Mesquite Post Acute Care , a 120-bed skilled nursing facility located in Lubbock, Texas. The real estate was acquired by a subsidiary of Standard Bearer and will be operated by an independent operating subsidiary of Ensign subject to a long-term triple net lease with Standard Bearer.
These acquisitions bring Ensign's growing portfolio to 334 healthcare operations, 30 of which also include senior living operations, across 15 states. Ensign subsidiaries, including Standard Bearer, own 134 real estate assets. Mr. Keetch reaffirmed that Ensign is actively seeking opportunities 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™
The Ensign Group, Inc.'s independent operating subsidiaries provide a broad spectrum of skilled nursing and senior living services, physical, occupational and speech therapies and other rehabilitative and healthcare services at 334 healthcare facilities in Alabama, Arizona, California, Colorado, Idaho, Iowa, Kansas, Nebraska, Nevada, South Carolina, Tennessee, Texas, Utah, Washington and Wisconsin. More information about Ensign is available at http://www.ensigngroup.net .
Contact Information
The Ensign Group, Inc., (949) 487-9500, [email protected]
SOURCE: The Ensign Group, Inc.