Last week, we recorded our 560th deal of 2024, which breaks the annual record for M&A volume across seniors housing and skilled nursing transactions. And we have more than two months to go. So there can be no dispute that we will set an M&A record this year, and by a large margin. But could 2024 actually end with a whimper?
We ask that because the 10-Year Treasury rate, which fell to 3.6% in September, the lowest level in more than a year and a half, is now above 4.2%, or the highest level since July. Much of the optimism at the NIC conference last month hinged on the Fed’s 50-basis point rate reduction in September and the 10-Year rate was at its low then too, but what about now? Are rates not falling as quickly as many of us expected going to impact any dealmaking, if pricing doesn’t make perfect sense to the buyer or the seller in some transactions? Or are the longer term expectations of the Fed lowering rates mattering more, and M&A will not be impacted?
All we can say it is perfect timing to have a longer-form conversation about the lending environment and the options available to borrowers today. So sign up for our Third Quarterly Investor Call, on October 23rd at 1pm ET. We’ll see you there.
