The Pennant Group (NASDAQ: PNTG) bought its first owned senior living asset earlier this year — and there may be more strategic acquisitions on the way.
In fact, the company is “to a brisk pace of strategic acquisition that will propel our growth over the next several years and beyond,” said Brent Guerisoli, who took the reins as CEO on Aug. 1, succeeding former leader Daniel Walker.
Specifically, he noted the company is looking to pick up communities with a “quality physical plant for our operational sales and marketing and wellness expertise to drive revenue increases through occupancy growth, additional care capabilities and rate improvement with discipline cost management.”
“Acquisitions are part of the DNA of our leaders … and we’re ready to put more capital toward strategic growth,” Guerisoli said Tuesday during the company’s second-quarter earnings call with investors and analysts.
Recent activity includes the company’s acquisition of the operations of an 82-unit assisted living and memory care community in Twin Falls, Idaho; and the acquisition of a senior living community with 39 assisted living and 45 memory care units in Boise, Idaho, subsequent to the end of 2Q22.
Pennant’s pipeline of potential acquisitions continues to expand, with company leadership noting a growing number of opportunities in both senior living and in home health and hospice.
“We have our share of challenges to continue to overcome and we still have significant inherent value to unlock,” Guerisoli said. “We know where we are going, how to get there, and we are excited about the progress we’re making.”
Underscoring the company’s plans to grow are positive results in its senior living portfolio during the second quarter of 2022.
Excluding the communities that Pennant transferred to affiliates of The Ensign Group (Nasdaq: ENSG) earlier this year, the company reported average occupancy for the second quarter of 2022 of 77.2%, an increase of 180 basis points over the first quarter of the year, and a gain of 190 basis points over the same period in 2021.
The company’s senior living segment revenue for the second quarter of 2022 was $31 million, representing an increase of $2.9 million compared to 2Q21. Much of that was to do with a gain in average revenue per occupied room (RevPOR), which ticked up to $3,470 in the second quarter of 2022 from an average of $3,176 during the same period in 2021.
Pennant’s stock price grew 3.18% Tuesday, ending the day at $16.57.
The post Pennant Group CEO: We’re Poised to Resume ‘Brisk Pace’ of Acquisitions appeared first on Senior Housing News.
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