‘Perfect fit’: Ensign acquires 8 nursing homes in Colorado and Kansas, with potential to increase occupancy

Ensign Group (NASDAQ: ENSG) has acquired seven skilled nursing facilities (SNFs) in Colorado with a combined 760 beds, as well as a 102-bed SNF in Kansas, the company announced Tuesday.

“We are excited to continue our recent expansion into Colorado,” CEO Barry Port said in a press release. “These operations align perfectly with our existing presence in the state.”

The Port confirmed that Ensign is actively seeking property acquisition and lease opportunities for both successful and struggling nursing facilities, senior living facilities and other healthcare-related businesses across the United States.

Dave Jorgensen, president of Endura Healthcare, a Colorado-based subsidiary of Ensign, said, “Our team is very excited about the addition of these operations. We look forward to adding our experience and culture to these facilities.”

Average occupancy in July at acquired facilities in Colorado and Kansas was about 72.3% and 80.6%, respectively, according to estimates from Stephens Inc., which uses data from the Centers for Medicare & Medicaid (CMS).

According to Stephen’s research, Colorado’s acquisition occupancy rate in July was significantly lower than the Ensign state average of about 85.3% and the statewide average of about 75.8%.

Meanwhile, Kansas’s occupancy rate is lower than the Ensign state average of about 88.0% but higher than the industry average of about 79.9%.

Last month, Ensign added 334 SNF beds through acquisitions in Colorado and Iowa. That brings the total number of beds added through the third quarter of 2024 to 1,196.

Ensign’s growing presence has exceeded analysts’ expectations.

“It’s worth noting that with the addition of 2,502 long-term care facility beds this year, (Ensign) is already ahead of our full-year 2024 forecast of 2,266 beds,” noted Scott Fidel, an analyst at Stephens Inc.

These acquisitions expand Ensign’s portfolio to 323 healthcare facilities, 29 of which include senior living facilities, in fourteen states.

Ensign subsidiaries, including Standard Bearer, own 122 properties.

Ensign’s independent subsidiaries provide skilled nursing and senior care services, physical therapy, occupational and speech therapy, and other rehabilitation and health care services in the following states: Arizona, California, Colorado, Idaho, Iowa, Kansas, Nebraska, Nevada, South Carolina, Tennessee, Texas, Utah, Washington and Wisconsin.

These transactions became effective September 1, 2024 and are subject to long-term triple-net lease agreements.