Ensign Expands Real Estate in Texas with Five Nursing Homes

The Ensign Group (Nasdaq: ENSG) and its captive real estate company Standard Bearer REIT acquired five skilled nursing facilities in Texas for undisclosed amounts, between Jan. 31 and Feb. 3.

Standard Bearer exercised its purchase option for Texas properties Beacon Harbor Healthcare & Rehabilitation, a 190-bed facility, along with 126-bed Pleasant Manor Healthcare & Rehabilitation, 150-bed Rowlett Health & Rehabilitation Center, and Crestwood Health & Rehabilitation Center, which has 112 skilled nursing beds and 36 assisted living units.

“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.”

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The Texas acquisition showcases one of the many avenues available to Standard Bearer for Growth, Keetch said. The group will continue to use its reputation as a “top-notch operator” to gain purchase options in its leases, allowing the team to grow operations while capturing upside created in the real estate.

The properties have been operated by an Ensign-affiliated company under two third-party leases, with purchase options since 2019, Ensign said in a statement. They will continue to be operated by independent operating subsidiaries of Ensign and subject to long-term triple net leases with Standard Bearer.

Following these acquisitions, San Juan Capistrano, Calif.-based Ensign announced its acquisition of Mesquite Post Acute Care, which operates 120 beds in Lubbock, Texas.

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“This facility will cluster extremely well with our existing operation in Lubbock and is another addition to Standard Bearer’s ever-growing portfolio,” Ensign CEO Barry Port said in a statement.

Andy Ashton, president of Ensign’s Texas-based subsidiary Keystone Healthcare, said the group looks forward to adding additional resources in order to provide high quality care to residents and their families.

Acquisitions in the new year bring Ensigin’s portfolio to 334 health care operations across 15 states, 30 of which are senior living operations.

Ensign subsidiaries, including Standard Bearer, now own 134 real estate assets.

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