Although workforce challenges and the lingering effects of the COVID-19 pandemic continue to disrupt the long-term care industry, Ensign Group and Omega Healthcare Investors executives said that the companies are on paths to sustained long-term growth.
In the second quarter, Ensign acquired Sea Cliff Assisted Living, an 84-bed senior living community in Huntington Beach, CA; The Grove Assisted Living, a 90-bed senior living community in Riverside, CA; and Redmond Heights Senior Living, a 97-bed senior living community in Redmond, WA.
Several of those acquisitions involve senior living operations that were part of the 2019 spinoff of some properties to the Pennant Group. After several years of the properties operating independently of Ensign, both Pennant and Ensign determined that due to the nature of those senior living buildings, most of which are part of campuses that include Ensign-affiliated skilled nursing operations, the operational efficiencies and other strategic advantages justified returning the operations to Ensign.
Standard Bearer Healthcare REIT, a subsidiary of Ensign, also announced acquisitions during the quarter, among them Villa Maria Wellness Living, a 31-bed assisted living community.
In total, the acquisitions bring Ensign’s portfolio to 259 operations — 26 of which also include senior living operations — across 13 states.
During Tuesday’s second-quarter earnings call, Ensign Chief Investment Officer and Executive Vice President Chad Keetch said that Ensign looks forward to another busy fall and winter and preparing for more growth in 2023.
“Regardless of COVID trends, government waivers or political climates, we are confident in our ability to make operational adjustments, take advantage of an attractive acquisition environment, and lean on our experienced leadership — both in our service center and in the field — to continue our long-term path of performance,” Keetch said.
Omega Healthcare Investors
Omega CEO Taylor Pickett similarly said during the company’s second-quarter earnings call that the real estate investment trust made $73 million in investments in capital expenditures in the second quarter, bringing its total new investments for the year to $214 million.
Omega’s portfolio experienced a steady growth in occupancy, and Pickett said the labor market is showing signs of improvement.
Omega’s senior housing occupancy increased to 87.9% as of mid-July, up from 83% in January.
