The Ensign Group Adds Skilled Nursing Facility in Washington

Rhea-AI Summary

The Ensign Group (NASDAQ: ENSG) has acquired Marianwood Health and Rehabilitation, a 117-bed skilled nursing facility in Issaquah, Washington, through its subsidiary Standard Bearer Healthcare REIT. The acquisition, effective May 1, 2025, is part of a larger acquisition of eight facilities from Providence Home and Community Care announced in December 2024. The facility will be operated by an Ensign-affiliated tenant and strategically clusters with existing locations. With this addition, Ensign's portfolio expands to 344 healthcare operations, including 44 senior living operations across 17 states, with Standard Bearer owning 144 real estate assets.

Positive

• Strategic expansion with acquisition of a 117-bed skilled nursing facility in Washington
• Property clusters well with existing locations, enhancing operational efficiency
• Part of a larger strategic acquisition of 8 facilities from Providence Home and Community Care
• Strengthens Standard Bearer Healthcare REIT's portfolio in the northwest region

Negative

• None.

Insights

Healthcare Business Analyst

Ensign Group expands Washington presence with acquisition of 117-bed nursing facility, part of larger transaction, bringing total portfolio to 344 facilities.

The Ensign Group has completed its acquisition of Marianwood Health and Rehabilitation, acquiring both operations and real estate of this 117-bed skilled nursing facility in Issaquah, Washington. This transaction, effective May 1, 2025, was executed through Ensign's standard operational model: the real estate was purchased by Standard Bearer Healthcare REIT (Ensign's captive real estate company), while operations will be managed by an Ensign-affiliated tenant.

This acquisition completes part of a previously announced larger transaction from December 2024 involving eight facilities from Providence Home and Community Care. The strategic importance of this acquisition relates to geographic clustering, as noted by CEO Barry Port, who indicated the facility "clusters well with our existing locations." This geographic concentration typically enables operational efficiencies through shared resources and management.

From a portfolio perspective, this addition brings Ensign to 344 healthcare operations (including 44 senior living facilities) across 17 states, while Standard Bearer now owns 144 real estate assets. The Washington market appears to be of particular strategic importance, with Steve Farnsworth, President of Pennant Healthcare (Ensign's Washington subsidiary), specifically highlighting "strong growth in Washington." This acquisition demonstrates Ensign's continued execution of its stated growth strategy of acquiring both real estate and healthcare operations throughout the United States.

Real Estate Investment Analyst

Standard Bearer REIT expands northwest portfolio through nursing facility acquisition, strengthening Ensign's vertically-integrated ownership and operations model.

This acquisition reinforces Ensign Group's vertically-integrated business model, which combines real estate ownership through its captive REIT (Standard Bearer) with operational management through affiliated tenants. The transaction structure offers several potential advantages: 1) Control over both physical assets and operations, 2) Operational flexibility, and 3) Potential tax efficiencies through the REIT structure.

The geographic clustering strategy highlighted by CEO Barry Port suggests a deliberate portfolio construction approach focused on building density in specific markets, in this case strengthening their northwest presence. This clustering typically creates economies of scale in facility management, staffing, and local market leverage.

The addition brings Standard Bearer's real estate holdings to 144 assets, representing significant scale in the healthcare real estate sector. Skilled nursing facilities represent a specialized asset class with unique characteristics including stable long-term demand driven by demographics, though they also carry specific regulatory considerations regarding reimbursement models and care requirements.

This transaction typifies Ensign's stated approach to growth through selective acquisitions of both properties and operations, with the company explicitly indicating they continue to seek similar opportunities across the country.

SAN JUAN CAPISTRANO, Calif., May 02, 2025 (GLOBE NEWSWIRE) -- The Ensign Group, Inc. (Nasdaq: ENSG), the parent company of the Ensign™ group of companies, which invest in and provide skilled nursing and senior living services, physical, occupational and speech therapies, other rehabilitative and healthcare services, and real estate, announced today that it acquired the real estate and operations of Marianwood Health and Rehabilitation, a 117-bed skilled nursing facility located in Issaquah, Washington. The real estate was acquired by a subsidiary of Standard Bearer Healthcare REIT, Inc., Ensign’s captive real estate company, and will be operated by an Ensign-affiliated tenant. The acquisition was effective as of May 1, 2025 and was part of the larger acquisition of seven other facilities from Providence Home and Community Care, which was announced in December 2024.

“We are honored to have been entrusted to continue the long-standing tradition of quality care in this operation,” said Barry Port, Ensign's Chief Executive Officer. “This facility clusters well with our existing locations and continues to build a strong portfolio for Standard Bearer in the northwest,” he added.

Steve Farnsworth, President of Pennant Healthcare LLC, Ensign’s Washington-based subsidiary, added “This operation is a perfect fit for us, and we are excited to continue our strong growth in Washington. The team is incredible, and we are excited to join forces with them to provide excellence to our residents and their families.”

This acquisition was effective as of May 1, 2025, and brings Ensign's growing portfolio to 344 healthcare operations, which includes 44 senior living operations, across 17 states.  Ensign subsidiaries, including Standard Bearer, own 144 real estate assets.  Mr. Port reaffirmed that Ensign is actively seeking opportunities to acquire real estate and to lease both well-performing and struggling skilled nursing, senior living and other healthcare related businesses throughout the United States.

About Ensign™

The Ensign Group, Inc.'s independent operating subsidiaries provide a broad spectrum of skilled nursing and senior living services, physical, occupational and speech therapies and other rehabilitative and healthcare services at 344 healthcare facilities in Alabama, Alaska, Arizona, California, Colorado, Idaho, Iowa, Kansas, Nebraska, Nevada, Oregon, South Carolina, Tennessee, Texas, Utah, Washington and Wisconsin. More information about Ensign is available at http://www.ensigngroup.net.

Contact Information

The Ensign Group, Inc., (949) 487-9500, ir@ensignservices.net

SOURCE: The Ensign Group, Inc.

FAQ

What is the latest acquisition by Ensign Group (ENSG) in May 2025?

Ensign Group acquired Marianwood Health and Rehabilitation, a 117-bed skilled nursing facility in Issaquah, Washington, effective May 1, 2025.

How many healthcare facilities does Ensign Group (ENSG) now operate after the May 2025 acquisition?

After the acquisition, Ensign Group's portfolio includes 344 healthcare operations, with 44 senior living operations across 17 states.

How many real estate assets does Ensign's Standard Bearer own as of May 2025?

Standard Bearer, Ensign's captive real estate company, owns 144 real estate assets.

Is the Marianwood Health acquisition part of a larger deal for Ensign Group (ENSG)?

Yes, this acquisition is part of a larger acquisition of eight facilities from Providence Home and Community Care, which was announced in December 2024.