Brookdale Senior Living announced Monday it has agreed to acquire 41 facilities for a collective $610 million.

According to a release, the facilities offer a combined 2,789 units.

Cindy

Cindy Baier

Specifically, Brentwood-based Brookdale will acquire 11 senior living facilities (1,228 units) for $300 million from a joint venture between Welltower Inc. and its joint venture partners. Similarly, Brookdale will acquire five such facilities (686 units) from Welltower for $175 million. In addition, the company will purchase 25 senior living properties (875 units) from Diversified Healthcare Trust (DHC) for $135 million.

Brookdale has been operating within the 41 facilities via triple-net leases.

The release notes the acquisitions are expected to be funded via cash, existing debt, net proceeds from the sale of a newly issued series of convertible senior notes and proceeds from the financing of assets. Brookdale expects the transactions to reduce 2025 cash lease payments by $47 million, to improve 2025 adjusted EBITDA by $33 million, and to improve 2025 adjusted free cash flow by about $15 million.

"The immediate and long-term benefits of these real estate transactions are wide-ranging, including future portfolio flexibility that comes through asset ownership, the opportunity to fully realize the long-term benefits of the powerful senior housing outlook, and following closing, the expected immediate improvement in adjusted EBITDA and adjusted free cash flow from a lower-cost capital structure," Cindy Baier, Brookdale president and CEO, said in the release.

"We appreciate Welltower, their JV partners, and DHC for their partnership on these transactions as they highlight the importance of maintaining collaborative relationships with our [real estate investment trust] partners as we continually strive to further enhance shareholder value."

New York-based investment management firm Deerfield and Wilson, Wyo.-based Flat Footed (a REIT owning senior housing properties and medical office buildings) participated in the effort.

Shares of Brookdale Senior Living (ticker: BDK) were priced at $6.86, up $0.27 (4.1 percent) in mid-morning trading. The company’s stock began the year trading at $5.72 per share.

This article was first published by our sister publication the Nashville Post.