Ensign Group Forms New Captive REIT to Continue Aggressive Acquisition Growth Strategy

The Ensign Group, Inc.’s (Ensign) independent operating subsidiaries provide a broad spectrum of skilled nursing and assisted living services, physical, occupational and speech therapies and other rehabilitative and healthcare services at multiple locations in Arizona, California, Colorado, Idaho, Iowa, Kansas, Nebraska, Nevada, South Carolina, Texas, Utah, Washington and Wisconsin. In recent years, the company has significantly expanded its operations.

Ensign’s new business venture operating subsidiaries also offer several other post-acute-related services, including mobile x-ray, lab, non-emergency transportation services and other consulting services also across several states.

Ensign recently announced the formation of a new captive REIT in order to build upon its established real estate investment platform with high-quality assets. Through the years, Ensign’s entrepreneurial culture has generated value for its stakeholders.

Ensign’s new captive REIT provides the company with a new pathway to growth that didn’t exist before, giving us more flexibility in the use and access of capital and enables the collective acquisition team to strategically focus on value creation through real estate investing.

With the new structure not expected to be finalized until the first quarter of next year, Ensign plans to continue to pursue acquisition opportunities and to deploy various strategies to grow its operational and real estate footprint, including in new acquisitions, acquiring leased properties already operated by Ensign and exercising purchase options. Ensign has added 17 operations to its organization this year.

Recent Ensign skilled nursing acquisitions include Sedona Trace Health and Wellness Center, a 119-bed SNF in Austin, Texas; Cedar Pointe Health and Wellness Center, a 122-bed SNF in Cedar Park, Texas; River Pointe Of Trinity Health and Rehabilitation Center, a 98-bed SNF in Trinity, Texas; Park Village Healthcare and Rehabilitation, a 150-bed SNF in De Soto, Texas; and Skyline Transitional Care Center, an 80-bed SNF in Boise, Idaho.


Takeaway: Ensign expects its new captive REIT to provide more flexibility in the use and access to capital and to strategically focus on value creation through real estate investing