Pennant Group sees 'steady stream' of senior living deals in second quarter. August 6, 2026 The second quarter produced a "steady stream" of senior living deals for The Pennant Group, the Eagle, ID-based holding company's president and chief operating officer, John Gochnour, said Thursday on a second-quarter earnings call. * On April 1, Pennant acquired the operations and real estate of a 99-unit independent living, assisted living and memory care community formerly known as Arbor Rose Senior Living and now known as Lavender Lane Senior Living, expanding its Phoenix portfolio. * On May 1, Pennant announced that it had acquired three assisted living communities: a 100-unit one in Glendale, AZ, formerly known as Amarsi Senior Living and now operating as Saguaro Assisted Living; a 45-unit one in Neenah, WI, formerly known as Emerald Ridge and now operating as Cardinal Lane Senior Living; and a 49-unit one in New Franken, WI, formerly known as Anna's House and now operating as Harbor Haven Senior Living. All three operations are subject to triple-net leases. * Later in May, Pennant acquired the operations and real estate of Copper Canyon Memory Care, a 40-unit community in Tucson, AZ. * On June 1, Pennant assumed operations of Memory Care of Contra Costa, in Pleasant Hill, CA, which inlcudes 46 memory care units. "These acquisitions reflect Pennant's commitment to high-acuity senior living care, which is embedded in our DNA as a clinical company," Gochnour said. "We believe that our ability to accept and serve more clinically complex residents positions us well for the demographic trends ahead." The growth in Pennant's senior living segment resulted in revenue improving to $60.2 million in the second quarter, an increase of $6.7 million over the same quarter in 2025, driven by the acquired senior living communities and an improved average rate per occupied room and improved occupancy, the company said on the call and in a quarterly report filed with the Securities and Exchange Commission. Occupancy, revPOR and other highlights of the quarter: * Average occupancy was 78.9%, an increase of 10 basis points over the prior-year quarter. Same-store average occupancy was 81.6%, an increase of 150 basis points over the same quarter in 2025. * Average monthly revenue per occupied room was $5,392, an increase of $204, or 3.9%, over the prior year quarter. Same-store average monthly revPOR for the quarter was $5,413, an increase of $282, or 5.5%, over the same quarter in 2025. * Senior living segment adjusted EBITDAR (earnings before interest, taxes, depreciation, amortization and restructuring or rent) from operations was $16 million, an increase of $1.2 million, or 7.9%, over the prior year quarter. Segment adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) from operations was $5.8 million, an increase of $0.7 million, or 13.2%, over the same quarter in 2025. "We are pleased with the broad-based stability and leadership in our senior living business, which has enabled us to be active acquirers with seven deals closed year to date," Gochnour said. One of those transactions occurred Aug. 1, after the second quarter ended. Then, Pennant acquired the operations and real estate associated with Inspirations of River Centre Senior Living, a 63-unit assisted living community in Tucson, AZ, for $7 million. The community now will be known as River Centre Assisted Living. "The addition of River Centre and Copper Canyon increases our growing real estate portfolio [in Tucson] to nine properties, including five acquired in the last 12 months," the COO said. "It also strengthens our robust care continuum in Tucson, which includes multiple home health, hospice and senior living operations." Gochnour predicted that Pennant will experience "some lumpiness" in the third and fourth quarters as it integrates its newly acquired senior living communities into its business. Many of the properties "have low occupancy, but compelling long-term potential that we are excited to unlock," he noted. As of June 30, the company's subsidiaries operated 69 senior living communities and 175 home health, hospice and home care agencies located across 16 sates: Alabama, Arizona, California, Colorado, Georgia, Idaho, Montana, Nevada, Oklahoma, Oregon, Tennessee, Texas, Utah, Washington, Wisconsin and Wyoming, according to the quarterly report. 'Meaningful relationships' with managed payers. Although most residents in the senior living communities in the Pennant portfolio pay for senior living with private funds, some are Medicaid beneficiaries. When asked about the current Medicaid environment, Pennant Group Senior Living President Andy Rider said that the firm has "developed really meaningful relationships with the managed payers in the states where we serve higher density on the Medicaid population side" and is "pretty particular about the states where we're expanding that offering versus not." "We see stability where we have that density and believe that we need to create an offering for all, but also it has to be in a way that protects margin," Rider said. "In those states where we have those relationships, because we're providing a lot of value, and we're working with those managed care payers, we continue to be able to negotiate and work with them to create not just an offering from a community standpoint, but one that does have a viable margin and gives us hope for the future." Regarding rate pressure, he said, "We continue to monitor that situation but haven't felt large effects in any of our major density areas." 'Another strong quarter' Overall, CEO Brent Guerisoli said, Pennant had "another strong quarter," putting the firm on pace to surpass the top end of its original guidance range. "Our momentum is the product of diligent focus on operational excellence, along with effective transitions at recently acquired operations," he said. In the quarter, Pennant saw revenue of $298 million, an increase of $78.5 million, or 35.8%, over the same quarter in 2025. Adjusted EBITDA was $24.3 million, an increase of $7.9 million, or 48.2%, over the prior-year quarter. Adjusted EBITDA before [non-controlling interest] was $26.1 million, an increase of $8.8 million, or 51%, over the same quarter in 2025, and adjusted diluted earnings per share were $0.36, an increase of $0.09 or 33.3% over the prior-year quarter. The company is raising its annual guidance. "We anticipate full year revenue in the range of $1.17 billion to $1.19 billion, adjusted EBITDA prior to NCI of $101.5 million to $105.1 million, and adjusted earnings per share in the range of $1.34 to $1.41," Guerisoli said. "With solid performance across the portfolio, a pipeline of potential growth opportunities, and a robust balance sheet, we are excited for the remainder of 2026 and beyond." Read additional coverage of this earnings call in McKnight's Home Care.

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EAGLE, Idaho , Oct. 01, 2019 (GLOBE NEWSWIRE) -- The Pennant Group, Inc. (NASDAQ: PNTG), the parent company of operating subsidiaries that provide home health, hospice and senior living services, announced today that it has successfully completed its spin-off from The Ensign Group, Inc.