Purchase lowers risk

Article Excerpt

EXTENDICARE INC. $8.65 (Toronto symbol EXE; TSINetwork Rating: Extra Risk) (905-470-5534; www.extendicare.com; Shares outstanding: 88.3 million; Market cap: $763.5 million; Dividend yield: 5.6%) has now completed the acquisition of the Lynde Creek Retirement Community in Whitby, Ontario, for $34.5 million. The community includes the Lynde Creek Manor Retirement Residence. This is a modern private-pay luxury facility; it’s also currently 100% occupied, with a strong waiting list. Provinces regulate nursing homes in Canada, and provide substantial funding. Both are subject to extensive and frequently changing standards. To offset the uncertainty of government funding, Extendicare continues to expand its private-pay segment. This includes Lynde Creek. Extendicare Inc. is a buy. buy…