The Ensign Group Increases Operations in Arizona

Rhea-AI Summary

The Ensign Group (Nasdaq: ENSG) announced multiple acquisitions, effective December 1, 2025, expanding operations and real estate activity across several states. Key moves include acquiring operations of the 144-bed Santa Rosa Care Center in Tucson, AZ (triple net lease), purchasing real estate and operations of the 45-bed Willow Point Rehabilitation and Nursing Center in Kansas City, KS (real estate bought by Standard Bearer Healthcare REIT subsidiary and leased to an Ensign operator), and acquiring operations of two Colorado nursing facilities (103-bed Sandalwood and 69-bed Edgewater), all effective Dec. 1, 2025.

These transactions bring Ensign’s portfolio to 373 healthcare operations across 17 states, with subsidiaries owning 156 real estate assets. Management said the company continues to pursue additional real estate and operating acquisitions nationwide.

Positive

• Portfolio increased to 373 healthcare operations
• Adds a 144-bed skilled nursing operation in Tucson, AZ
• Subsidiaries now own 156 real estate assets

Negative

• Multiple long-term triple-net leases increase contractual lease obligations
• Real estate purchase via captive REIT concentrates capital deployment

Insights

Healthcare M&A Analyst

Ensign expanded operations via multiple facility acquisitions, modestly increasing scale without disclosed financials.

Ensign added four skilled nursing operations across Arizona, Kansas, and Colorado effective Dec 1, 2025, bringing its operating portfolio to 373 facilities and 47 senior living operations across 17 states. The transactions transfer operations to Ensign-affiliated operators and place real estate partly under its captive REIT, keeping operational control while separating some asset ownership.

Key dependencies include integration of local care teams, occupancy and reimbursement levels at each facility, and lease terms with third‑party landlords. The release provides no financial terms, so impact on revenue, margins, or leverage remains unknown. Monitor near-term operating metrics such as same‑facility occupancy and payer mix, and any follow-up disclosures of purchase prices or lease obligations over the next quarter.

Real Estate & Operations Analyst

The deals cluster operations into mature markets and use long‑term triple net leases to align real estate exposure with Ensign’s captive REIT.

Operational acquisitions in Tucson, Kansas City, Wheat Ridge, and Lakewood increase managed scale while the Standard Bearer subsidiary acquired at least one real estate asset, leaving other properties on long‑term triple net leases to third parties. This structure preserves operating control while limiting capital tied up in real estate and concentrates landlord risk into the captive REIT when it buys assets.

Risks hinge on lease economics, future capital expenditure needs for the facilities, and the performance of the newly acquired operations. Watch for any disclosed lease durations, capital commitments, and maintenance capex in upcoming filings or press updates within the next 90 days to assess balance sheet and cash‑flow implications.

SAN JUAN CAPISTRANO, Calif., Dec. 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 operations of “Santa Rosa Care Center”, a 144-bed skilled nursing facility located in Tucson, Arizona which is subject to a long-term, triple net lease with a third-party landlord. This acquisition was effective as of December 1, 2025.

“We are excited to add another operation to one of our more mature and thriving markets,” said Barry Port, Ensign’s Chief Executive Officer. “This facility clusters well with other operations in Tucson and we are looking forward to seeing what the future holds,” he continued.

Christie Jones, market leader for Bandera Healthcare LLC, Ensign’s Arizona-based subsidiary, added, “We are excited to work together with the outstanding care team at the facility and combine their expertise with Ensign’s quality of service to provide our residents and their families the care they want and need.”

In a separate transaction on the same day, Ensign announced that it acquired the real estate and operations of “Willow Point Rehabilitation and Nursing Center”, a 45-bed skilled nursing facility located in Kansas City, Kansas. The real estate was purchased by a subsidiary of Standard Bearer Healthcare REIT, Inc., Ensign’s captive real estate company, and operations were leased to an Ensign-affiliated operator, subject to a long-term lease effective as of December 1, 2025.

In another transaction on the same day, Ensign announced that it acquired the operations to two facilities in Colorado (i) “The Rehabilitation Center at Sandalwood”, a 103-bed skilled nursing facility located in Wheat Ridge, Colorado, and (ii) “Edgewater Health and Rehabilitation”, a 69-bed skilled nursing facility located in Lakewood, Colorado. Both facilities are operated by an Ensign affiliated operator and are subject to a long-term triple net lease. This acquisition was effective as of December 1, 2025.

These acquisitions bring Ensign’s growing portfolio to 373 healthcare operations, which includes 47 senior living operations, across 17 states. Ensign subsidiaries, including Standard Bearer, own 156 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 373 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 facilities did Ensign (ENSG) acquire effective Dec. 1, 2025?

Ensign acquired operations of Santa Rosa Care Center (144 beds, Tucson AZ), operations and real estate of Willow Point (45 beds, Kansas City KS), and operations of two Colorado facilities (103-bed Sandalwood and 69-bed Edgewater), effective Dec. 1, 2025.

How does the Dec. 1, 2025 deal affect Ensign’s total operations (ENSG)?

After the transactions, Ensign’s portfolio totals 373 healthcare operations across 17 states.

Did Ensign (ENSG) buy the real estate for Willow Point or lease it?

A subsidiary of Standard Bearer Healthcare REIT purchased Willow Point real estate and leased operations to an Ensign-affiliated operator under a long-term lease.

Are the new Arizona and Colorado facilities subject to triple-net leases under ENSG?

Yes; the Santa Rosa care center and the two Colorado facilities are reported as subject to long-term triple net leases.

How many real estate assets does Ensign (ENSG) own after these transactions?

Ensign subsidiaries, including Standard Bearer, own 156 real estate assets following these transactions.

Is Ensign (ENSG) still pursuing additional healthcare real estate and operations?

Yes; management reaffirmed that Ensign is actively seeking opportunities to acquire real estate and lease healthcare operations nationwide.