Capital Senior Living Terminates Hearthstone Transaction - Quick Facts

(RTTNews) - Capital Senior Living Corp. (CSU | news | PowerRating | PR Charts ) announced that it has terminated its previously announced agreement with Hearthstone Senior Services, L.P. to acquire Hearthstone's interests in 32 leases with a healthcare REIT.

Based on the results of subsequent due diligence and lease negotiations, the transaction would not create demonstrable value for the Company's shareholders.

The Company intends to convert 256 independent living units in eight communities to units of assisted living and dementia care. Upon stabilization, these converted units are projected to increase the Company's revenues by $4.3 million with a 60% incremental margin.

In addition, the Company is planning to expand three communities adding a total of 180 assisted living units, 60 dementia care units and 30 independent living units.

The expansions should begin in the second half of this year, and, upon stabilization, are projected to increase the Company's revenues by $9.1 million with a 60% incremental margin.

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