Capital Senior Living on Thursday reported four consecutive months of growth, with occupancy at 79.1% at the end of June.
This rate represents an increase of 380 basis points (3.8%) from the pandemic low average monthly occupancy of 75.3% in February 2021.
The company credits increasing vaccination rates among residents at its properties as a major contributor to the change, according to a press release. Most residents now are fully vaccinated, Capital reported. Less restrictive visitation, full in-person tours, communal dining, group activities and events also are bumping up occupancy, according to the company.
Capital also said Thursday that it moved to strengthen its financial profile with strategic investment from Conversant Capital and proposed rights offerings to raise up to $152.5 million. The board of directors unanimously approved the transaction following an exploration of strategic alternatives and financing sources for the company to address its liquidity needs, according to a separate press release.
“This really is a fantastic deal. We’re incredibly excited about the future,” Capital Chief Operating Officer Brandon Ribar told the McKnight’s Business Daily.
“It’s really a great time for us. …The timing is excellent,” Kimberly S. Lody, president and CEO, told the McKnight’s Business Daily. The transaction, she said, will allow the company to improve its liquidity with working capital.
“We’re excited to be able to put some of that capital to work and continue funding the recovery [from the pandemic],” Lody said. “It will also help us in addressing some near-term mortgage debt.”
Capital, she added, has some debt coming due in December and another group of debt that is coming due in the early part of 2022 for a total of $110 million in mortgage debt.
Most importantly, Lody said, the transaction will allow Capital to fund growth strategies for the business.
“This is a huge testament to the people that we have working in our company,” Lody said.