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rookdale Senior Living Inc. (NYSE: BKD) announced the completion of two portfolio acquisitions on February 27, 2025, as part of its three-portfolio acquisition plan initiated in September 2024. The Company has acquired a total of 41 assets through these transactions, resulting in predictable high-yielding returns due to improved cost of capital and increased owned real estate portfolio.

    "We're well-positioned to create significant value over the next few years by leveraging favorable senior living industry dynamics," said Lucinda Baier, Brookdale's President and CEO. "Through community ownership, we can fully benefit from this growth outlook rather than sharing in the value-creation from our operations."

    The Company acquired five communities (686 units) previously leased from Welltower Inc. for $175 million, primarily located in affluent markets with a weighted average portfolio occupancy greater than 90%. The acquisition purchase price reflects a significant discount to the Company's estimate of replacement cost.

    Brookdale also acquired 25 communities (875 units) previously leased from Diversified Healthcare Trust for $135 million, which is geographically diverse and includes certain communities with performance above the Company average. The portfolio has a weighted average occupancy of approximately 80%.

    The combined $310 million cost of the two acquisitions was funded by $69 million of cash on hand and $241 million of mortgage debt financing sourced by CBRE National Senior Housing. Brookdale obtained $161 million of mortgage debt from Ally Bank, secured by first priority mortgages on 36 communities, with an initial three-year term and extension options exercisable subject to performance criteria. The Company repaid $50 million of Ally Bank debt on 11 communities at the time of closing.