Sonida Senior Dwelling (NYSE: SNDA) is planning to purchase an eight-property senior residing portfolio in Florida and South Carolina for $103 million.
The acquisition, introduced in a press launch Thursday, contains properties “situated in engaging submarkets” and provides to the corporate’s footprint in Florida and South Carolina. The portfolio in whole spans 555 items, providing assisted residing and reminiscence care providers.
“With this deliberate acquisition, Sonida will additional broaden its high-quality and regionally-focused actual property portfolio with newer classic communities in mid-to-large metropolitan areas with favorable development prospects,” mentioned Brandon Ribar, Sonida’s president and CEO. “By efficiently integrating Sonida’s best-in-class working platform into these communities, and with occupancy development, ongoing lease charge enchancment, and efficient expense administration, these investments can finally generate significant worth creation for our shareholders.”
The portfolio has a median age of 5 years and was acquired at a per-unit worth of $185,000. Occupancy for the portfolio is roughly 83%, with a median income per occupied room of over $6,000.
This brings Sonida’s whole working portfolio to 91 communities, with the acquisition set to shut within the late third or fourth quarter of this yr, the corporate mentioned in a information launch.
Thursday’s acquisition comes as management sees a path to 90% occupancy, with development alternatives on the horizon and “an alternative to develop” margins going ahead, Ribar instructed SHN earlier this week following the corporate’s second quarter earnings name.
Additionally on Thursday, Sonida introduced a public providing of 4 million shares of widespread inventory to buy 600,000 extra shares of widespread inventory utilizing $102.9 million of the online proceeds to fund the acquisition of the current acquisition.
As of Thursday at market shut, Sonida inventory rose about 10.5% to relaxation at $32 per share.
