We have written several times in recent years that reports of the “death of the skilled nursing facility” have been greatly exaggerated. That is clearly evident in the record-high prices we have recorded in the sector, soaring to an average of $99,200 per bed in 2016 (up from the previous record of $85,900 per bed […]
A popular multiple that investors use to measure the value of a seniors housing and care property is the Gross Income Multiple (GIM). So, as prices have stayed consistently near record-highs for seniors housing (independent living and assisted living) properties, how much were buyers paying with respect to the properties’ revenues? In 2016, according to […]
Our editor Steve Monroe moderated a webinar on June 8 called “Skilled Nursing Reimbursement Under Trump Care” with panelists Joshua Jandris of IPA Seniors Housing and Marc Zimmet of Zimmet Healthcare Services Group, where they discussed Medicare reimbursement changes, the future of Medicaid managed care plans and the next shoe to drop on the reimbursement […]
Many buyers prize a community’s cash flow over other factors. If a community is already making money, and avoids any major missteps, it is probably a safe bet for investors. Neither 2015 nor 2016 reached the record average NOI per unit set in 2014 of $14,200 per unit, but in a year when the average […]
Last week, we looked at the price REITs paid on average for skilled nursing facilities in 2016, according to the 22nd Edition of The Senior Care Acquisition Report, compared with other buyers in the industry. But what about in seniors housing? REITs have been far more active buyers in the space, with many of the […]
Long-term care has experienced a dip in M&A, but after nearly three straight years of 80+ transactions per quarter (starting in Q3:2014 with 83), with a couple exceptions, it is about time the M&A juggernaut slows down a bit. The first quarter’s volume fell to 76 deals, down from 93 in the previous quarter and […]
When comparing the independent living and assisted living markets, one would expect IL communities to operate at a higher margin than AL, given its lower services and thus, costs. And while that remained true in 2016, independent living and assisted living expense ratios came as close to equal as any time in the past, at […]
It’s no surprise that as a community’s expense ratio declines, its value increases. As such, there was a near-perfect correlation between the expense ratio and the average price per unit paid in the seniors housing market in 2016 (including independent living and assisted living communities), according to the The Senior Care Acquisition Report. The best-operating […]
Assisted living per-unit prices rise for the latest four quarters, while skilled nursing remains the same. It was a relatively slow first quarter with regard to publicly announced seniors housing and care acquisitions, other than some old large deals announced last year that finally closed in the quarter. On a rolling four quarters basis, the […]
In 2016, buyers paid up for larger seniors housing communities (including independent living and assisted living) compared to 2015. We observed in the 22nd Edition of The Senior Care Acquisition Report that once again, the largest properties, with 150 units or more, still beat out smaller properties in price, averaging $226,200 per unit, 16% higher […]