60 Seconds with Swett: The REITs’ Acquisition Appetite
With most of the Q1 earnings results in, we’ve been sifting through a lot of good news on occupancy growth, resident rate increases, expanding NOI margins and the phenomenal long-term outlooks. But our main takeaway had to be the major M&A plans that almost every publicly traded company has completed so far this year and plans to close throughout the rest of 2026. They represent an enormous amount of capital flooding into the market, and although they are not all playing in the same sandbox, the increased acquisition appetite should have an effect on pricing for assets, particularly for the highly in-demand Class-A, well performing properties. The REITs will surely feel pressure to... Read More »
60 Seconds with Swett: Senior Care’s PR Problem
Recently, we have seen stories circulating about the connection between REIT ownership and the way skilled nursing facilities provide care, stemming from a study written by the nonprofit journalism outlet KFF Health News. We’ve seen this before, headlines like “real estate investors profit while patients suffer,” usually with graphic cases of mistreatment highlighted. Of course, patient abuse and bad actors are out there, but these “studies,” and more so the journalists that cover them, often lose sight of any other factors that could lead to a decline in quality of care, a change in staffing ratios, or the net income on an income statement. There has been a narrative that is usually being... Read More »
60 Seconds with Swett: Sticks and Bricks in ’26?
The talk around new development is getting a lot more serious in the seniors housing industry, leading us to wonder if our 2024 prediction of “Sticks and Bricks in ‘26” may actually come true, somewhat. Back then, we may have thought that interest rates would have come down a bit more by now, but that the FOMO of getting involved in seniors housing combined with rising prices in the M&A market would kick off a new building boom. We doubt there will be any “boom” in 2026, but the signs are there for increased activity. A couple of architects we spoke to at NIC said they were busier than ever, even if most builders are not putting as many shovels in dirt as they would like. The main... Read More »
60 Seconds with Swett: Institutional M&A Strategies
With the lack of new development and the alluring demographic opportunity in seniors housing, it has felt like a race among many institutional investors to grow their portfolios in the M&A market. Bidding environments have grown intense for high-quality assets, driving prices up, cap rates down, and the losing bidders more and more frustrated, and thus willing to go off market with high offers. The REITs have all been trying to catch up to Welltower, and have been very competitive in the bidding process. Major funds and investment firms that bowed as buyers after the pandemic and the capital markets crisis have largely returned to the space, and new entrants are increasingly knocking... Read More »
60 Seconds with Swett: Talking Construction and Cap Rates in Nashville
Another Spring NIC is in the books, and it was great to see so many industry friends in Nashville, which was a great setting for the conference, we must say. And it was another record attendance, with around 500 first-time attendees too. That surely is a sign of seniors housing’s appeal to potential new entrants. And they added to the positive energy in the room, overcoming some worried chatter about the Middle East, oil’s impact on inflation and the recent surge in the 10-Year Treasury Rate. There are plenty of deals, big and small, going around, leaving us more confident that we will break another M&A record in 2026. What we also left Nashville more confident about, which surprised... Read More »Schedule a demo
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