HealthPeak, Welltower, Ventas and Others Report This Week

HealthPeak, Welltower, Ventas and Others Report This Week

In the next 48 hours, six companies will report second quarter earnings. While it won’t be pretty, you have to think long term. Earnings season is here, and I am afraid it will not be very pretty. Unfortunately, it has not been pretty for a while, but we can always hope. Six companies will be reporting second quarter earnings over the next 48 hours. Everyone is trying to put as good a face on it as they can, especially since we all know that at some point in the future, it will get better. The questions are when, which sectors will start improving first, and how much better will it get? The thing I have a hard time reconciling is that there is still plenty of equity capital out... Read More »
The Ensign Group Acquires Arizona Senior Care Campus

The Ensign Group Acquires Arizona Senior Care Campus

The Ensign Group acquired a senior care campus with a variety of post-acute services, including physical, occupational and speech therapies and other rehabilitative and healthcare services in addition to assisted living. Located in Tempe, Arizona, the campus includes a 62-bed skilled nursing facility and a senior living community with 72 assisted living and 90 independent living units.  This was the first acquisition for usually active Ensign since the onset of COVID-19. Plus, the provider acquired both the real estate and operations at the property, furthering its strategy to own more of the real estate across its portfolio of 226 healthcare facilities. Right now, Ensign owns the real... Read More »
Watercrest Opens Senior Living Community In South Carolina

Watercrest Opens Senior Living Community In South Carolina

Watercrest Senior Living Group is opening another seniors housing community in the Southeast just a couple of months after announcing the grand opening of its 107-unit community in Winter Park, Florida, and the groundbreaking of another 98-unit community in Myrtle Beach, South Carolina. To open a new community these days must be a difficult task, let alone two, so we hope lease-up is going smooth and steady.  The most recent project is located in Lancaster, South Carolina, on the outskirts of Charlotte, NC. It features 107 units, split between 75 assisted living and 32 memory care, and most of the amenities you would find at a Watercrest community: pool, spa, multiple dining... Read More »
The NHP Foundation Acquires Another Senior Apartment Community

The NHP Foundation Acquires Another Senior Apartment Community

An affordable seniors housing community in Waterbury, Connecticut will continue its mission to serve low-income seniors thanks to its purchase by The NHP Foundation. Exchange Place Tower was originally built in 1983 with the help of rental assistance support from HUD.   The NHP Foundation will invest in extensive renovations to the 150-unit property, including remodeling kitchens, bathrooms, new energy efficient windows, accessibility improvements and the installation of fixtures that use less electricity and water. Eversource will also help with the property’s conversion from an oil-fired heating and hot water system to natural gas. Plus, the building will have spaces that allow for... Read More »
LTC Properties First to Report Q:2 Earnings

LTC Properties First to Report Q:2 Earnings

It is usually the larger REITs that are the first out of the block with their quarterly earnings reports, so it was nice to see LTC Properties be the first one this time. And a week before the others. With a stock market capitalization of just $1.4 billion, LTC prides itself on being nimble and customer-centric. In today’s “new normal,” that is crucial.  Pretty much every REIT has had its tenant problems this year, with some issues already present before the COVID-19 crisis hit the industry. The pandemic has just amplified existing problems. LTC’s second quarter performance was partially impacted by its “old news” story with Preferred Care, a situation that was mostly... Read More »
Senior Care M&A Market Remains at the Bottom

Senior Care M&A Market Remains at the Bottom

It appears we have hit the bottom of the seniors housing and care M&A market. For the second month in a row, we have recorded 18 publicly announced transactions in July, according to our database Deal Search Online. That is less than half of the monthly average in 2019 of 37.5 deals, and when taking into account the deals that actually closed in July (as opposed to publicly disclosed), activity was likely even lower. And from what we hear on the ground, conditions for dealmaking are not improving as quickly as was maybe thought back in May. And certainly not quick enough for the parties involved in closing the deals, we’re sure.  Just over half of the deals were for... Read More »
Inter-Generational Development Going Up In Milwaukee

Inter-Generational Development Going Up In Milwaukee

Funding was just secured for a multi-generational living complex going up next to Mount Mary University, a women’s Catholic college in Milwaukee, Wisconsin. Senior Housing Partners, an affiliate of the not-for-profit Presbyterian Homes & Services, is developing the $45 million project in partnership with the School Sisters of Notre Dame (SSND), Milwaukee Catholic Home and the University. Work on the site is expected to begin in September, with opening tentatively planned for Fall 2021. What plans aren’t tentative these days?  The campus will include 52 private assisted living units for the sisters of SSND, 24 dormitory units for single mothers... Read More »
Average Independent Living Values Slide Significantly

Average Independent Living Values Slide Significantly

Some have argued that the independent living market will fare better than assisted living or skilled nursing in the immediate aftermath of COVID-19. This is easy to see, given independent living’s longer average length of stay, lower expenses and younger, healthier resident population. Long-term may be a different story, as we brought up in the June edition of The SeniorCare Investor.   But interestingly, in the trailing-12 months ended June 30th, the IL sector recorded the largest drop in values from 2019 compared with the other senior care sectors. The average price per unit fell 16.5% from $233,600 in 2019 to $194,900 in the last four quarters, according to The Senior Care Acquisition... Read More »
The Prestige Group Sells Shuttered Senior Living Community

The Prestige Group Sells Shuttered Senior Living Community

A purpose-built, 62-unit senior living community located in suburban Philadelphia was shuttered over a year ago, but new ownership will soon reopen it as a market-rate apartment building. Joe Shallow and Jim Baranello of The Prestige Group represented the seller in the sale, which came to $3 million, or $48,400 per unit.  Originally built in 1989 as Sunrise Assisted Living, the Jenkintown community featured both personal care (assisted living) and memory care services. Chelsea Senior Living bought it around 2010 as part of an expansion outside of its New York and New Jersey footprint. However, this was Chelsea’s first and ultimately only facility in Pennsylvania, and after a few years any... Read More »