The Thomas Twins of Senior Star certainly had the right idea. Remember, they proposed buying all the owned properties of Five Star Senior Living for about $325 million, which we always assumed was an opening offer. Five Star has now agreed to sell just seven of its assisted living communities with 545 units to its REIT big brother, Senior Housing Properties Trust, in a sale/leaseback transaction. The price of $112.4 million comes to $206,200 per unit, and using that value (which we believe is high for the entire owned portfolio) on the remaining 26 owned properties with 2,666 units results in an additional $549 million in value. Five Star’s market cap, even after the nearly 40% jump in its share price Thursday, is still just $115 million. The value disconnect between public company prices and real estate prices continues. So what else is new? There were several other aspects concerning the relationship between Five Star and the REIT that have changed that we will cover in the July issue of The SeniorCare Investor, and the question will be, is it enough to keep the share price out of its recent bottom?