Capital Senior Living Corporation Closes a Three
Community Lease Transaction
May 03, 2010 06:03 AM Eastern Daylight Time
DALLAS--(EON: Enhanced Online News)--Capital Senior Living Corporation (the “Company”) (NYSE:CSU),
one of the country’s largest operators of senior living communities, today announced that Midwest Portfolio Holdings
II, LP (“Midwest II”), a joint venture in which the Company held a 15 percent partnership interest, has sold three
senior living communities to Health Care REIT, Inc. (NYSE:HCN). Upon closing the sale, the Company leased the
communities from HCN. The Company previously managed the three communities in the joint venture under long-
term management agreements.
The three communities being leased have approximately 300 units and include 198 units of assisted living and 102
units of memory care, with resident capacity of nearly 350. At the end of 2009, financial occupancy at the combined
communities was 90%. All three communities are located in Indiana.
“Similar to our previous transaction with HCN, this transaction will provide immediate benefits to our shareholders,”
commented Lawrence A. Cohen, Chief Executive Officer of the Company. “In addition to significant top-line
growth, the lease will be immediately accretive to cash flow and earnings. These three communities are strategically
located in the Midwest portion of the country, where nearly 50 percent of our operations are located. They are an
excellent addition to our newly formed relationship with Health Care REIT, Inc., a leading healthcare REIT that
invests across the full spectrum of senior housing and health care real estate.”
The Company received proceeds from Midwest II of approximately $1.3 million and will recognize a gain of $0.3
million on the transaction. The Company may receive additional proceeds after the joint venture settles its customary
post-closing costs.
Annualizing fourth quarter 2009 results of operations for the three communities yields approximately $11.7 million of
revenu