Ensign Group expands with four skilled nursing facilities across three states

Published 02/12/2025, 12:08
Ensign Group expands with four skilled nursing facilities across three states

TUCSON - The Ensign Group, Inc. (NASDAQ:ENSG) announced Monday the acquisition of four skilled nursing facilities across Arizona, Kansas, and Colorado, expanding its healthcare portfolio to 373 operations nationwide. The company, currently trading near its 52-week high of $194, has maintained a robust 17.55% revenue growth over the past twelve months according to InvestingPro data.

The parent company of healthcare service providers acquired the operations of Santa Rosa Care Center, a 144-bed skilled nursing facility in Tucson, Arizona, under a long-term triple net lease with a third-party landlord.

In a separate transaction, Ensign purchased both the real estate and operations of Willow Point Rehabilitation and Nursing Center, a 45-bed facility in Kansas City, Kansas. The real estate was acquired through Standard Bearer Healthcare REIT, Inc., Ensign’s captive real estate company.

Additionally, the company took over operations of two Colorado facilities: The Rehabilitation Center at Sandalwood, a 103-bed facility in Wheat Ridge, and Edgewater Health and Rehabilitation, a 69-bed facility in Lakewood. Both Colorado properties are subject to long-term triple net leases.

All transactions were completed effective December 1, 2025.

"This facility clusters well with other operations in Tucson," said Barry Port, Ensign’s Chief Executive Officer, regarding the Arizona acquisition.

With these additions, Ensign’s portfolio now includes 373 healthcare operations across 17 states, including 47 senior living operations. The company’s subsidiaries, including Standard Bearer, own 156 real estate assets.

According to the press release statement, Ensign continues to seek opportunities to acquire real estate and lease both well-performing and struggling healthcare-related businesses throughout the United States. The company appears slightly overvalued based on InvestingPro’s Fair Value assessment, despite strong fundamentals including a five-year revenue CAGR of 16% and cash flows that sufficiently cover interest payments. Ensign has also raised its dividend for 18 consecutive years, one of 12 ProTips available in the comprehensive Pro Research Report covering this healthcare provider.

In other recent news, The Ensign Group reported its third-quarter 2025 earnings, surpassing analyst expectations with an adjusted EPS of $1.64, compared to the forecasted $1.61. The company’s revenue reached $1.3 billion, exceeding the anticipated $1.28 billion. Additionally, RBC Capital raised its price target for The Ensign Group to $206 from $177, maintaining an Outperform rating, citing "record growth" and "strong occupancy" in the company’s third-quarter results. The Ensign Group also raised its guidance for 2025.

Moreover, The Ensign Group expanded its healthcare portfolio by acquiring four skilled nursing facilities across Kansas, Arizona, and Colorado. This acquisition includes the real estate and operations of Willow Point Rehabilitation and Nursing Center, a 45-bed facility in Kansas City, Kansas. The property was purchased through Standard Bearer Healthcare REIT, Inc., Ensign’s captive real estate company, and will be operated by an Ensign-affiliated tenant. These developments reflect the company’s strategic growth and operational expansion efforts.

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