We have said this before, but the seniors housing and care M&A market is on pace to record its best-ever year in terms of transaction activity, and by some margin. Already by this point in May, we are closing in on 250 transactions for the year, so far, which puts us on track for more than 600 publicly announced deals when we close out 2024. The split between skilled nursing and seniors housing activity followed historical norms, at 42% of the deals being for SNFs. And over $2.5 billion of transaction volume has been publicly disclosed, not including scores of deals with confidential prices, including large portfolios.
How could volume be so high despite a challenging lending and dealmaking environment? For one, sellers still need to sell, and usually because they have a non-stabilized property with maturing debt. Another reason for the high deal totals could also be that many of these individual transactions would have normally been combined into a single portfolio deal in the past.
But there is also plenty of buyer interest out there looking to capitalize on an investment environment of a generation. That may have been evident by the over 300 registrants that signed up for our recent webinar on the lending environment, with a large subset likely planning their future (or current) acquisition strategies and needing their financing options laid out succinctly by a panel of experts. They came to the right place, and subscribers can listen to the whole conversation here.
