Two California not-for-profits with senior living operations across several states merged effective April 1. Front Porch and Covia announced that the merger, which started in 2021, creates a consolidated organization with 19 senior living and 32 affordable housing communities serving approximately 7,500 residents. Other programs and services will connect more than 10,000 participants throughout the country.
The deal offers significant financial benefits for both organizations. In August, Fitch and S&P affirmed Front Porch’s ratings of “A” and “A-”, respectively, with both agencies assigning a “stable outlook” to the combined organization’s $305 million public debt refinancing that reduced annual debt service payments by more than $5 million. And in January, Front Porch’s Board of Directors approved the organization’s first unified budget.
With the merger now complete, Front Porch will move forward with a number of capital development projects. Among these is the expansion of memory care and the addition of high acuity assisted living and independent living at its Walnut Village community in Anaheim. Front Porch’s recent acquisition of an undeveloped parcel of land near its Carlsbad by the Sea community is planned to be developed for the same purposes. The organization will also be completing the conversion of a portion of the skilled nursing facility at its San Francisco Towers campus to memory care to meet growing demand for that service. Other projects include addressing routine capital upgrades delayed during the pandemic and the evaluation of redevelopment options for the Los Gatos campus closed in 2019.
