NASHVILLE, Tenn., July 27, 2016 /PRNewswire/ -- Brookdale Senior Living Inc. (NYSE: BKD) today announced that it has entered into an agreement with a third party to sell 44 communities for an aggregate sales price of $252.5 million. The 12-state portfolio comprises 2,453 units, including 1,874 assisted living units and 579 memory care units. The portfolio communities' revenue for the twelve months ended March 31, 2016 was approximately $89 million, and the portfolio's average occupancy for the first quarter of 2016 was 79%.
Andy Smith, Brookdale's President and CEO, said, "We are pleased to continue our portfolio rationalization initiative to simplify our business model and divest communities that do not fit with our strategy. This single transaction divests a diverse group of communities spread across 12 states and minimizes any operational disruption. We expect to use the proceeds of the transaction to primarily repay debt in another step towards deleveraging the balance sheet."
The closing of the disposition transaction, expected by the end of 2016, is subject to the receipt of regulatory approvals and the satisfaction of other customary closing conditions. There can be no assurance that the disposition transaction will close or, if it does, when the closing will occur.
About Brookdale Senior Living
Brookdale Senior Living Inc. is the leading operator of senior living communities throughout the United States. The Company is committed to providing senior living solutions primarily within properties that are designed, purpose-built and operated to provide the highest-quality service, care and living accommodations for residents. Brookdale operates independent living, assisted living, and dementia-care communities and continuing care retirement centers, with approximately 1,114 communities in 47 states and the ability to serve approximately 107,000 residents. Through its ancillary services program, the Company also offers a range of outpatient therapy, home health, personalized living and hospice services. Brookdale's stock is traded on the New York Stock Exchange under the ticker symbol BKD.
Certain statements in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including all statements regarding our intent or expectations relating to the 44-community disposition, the effect of such disposition on the Company's operations, and the Company's planned use of proceeds from the transaction; and the Company's plans to continue its portfolio rationalization initiative and the effect of such initiative on the Company's operations, performance and financial condition. Actual results could differ materially from those projected. Factors which could cause results to differ include, but are not limited to, the ability of the Company to complete the 44-community divestiture on the currently agreed upon terms or at all, including in respect of the satisfaction of closing conditions, the risk that regulatory approvals are not obtained or are subject to unanticipated conditions, and uncertainties as to the timing of the closing; the Company's ability to identify transactions favorable to the Company and close such transactions as part of its portfolio rationalization initiative; the Company's ability to achieve the expected benefits of such identified transactions within expected time-frames; as well as other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. These forward-looking statements reflect management's views as of the date of this press release, and the Company expressly disclaims any obligation to release publicly any updates or revisions to any of these forward-looking statements to reflect any change in its expectations.
SOURCE Brookdale Senior Living Inc.