• National Health Investors Issues Another Update

    National Health Investors is continuing its steady census progress, but the rent deferrals for Bickford Senior Living just will not end. The silver lining is that the deferral amounts are decreasing, from $3 million in both March and April of this year and $2 million in June. Now, the two parties have agreed to $1.5 million in rent deferrals per... Read More »
  • Another Family Owner/Operator Exits the Industry

    As Covid-19 has led to overall decreases in senior housing occupancy levels, Sherer Management joined several of its peers by closing down its multigenerational family business with the sale of its last two CCRCs in Iowa.  These properties include a total of 188 beds at Rose Vista in Woodbine and Longview Home in Missouri Valley.... Read More »
  • HJ Sims Refinances Michigan Provider

    It took a couple of tries, but HJ Sims arranged $41.9 million in financing for Sunset Retirement Communities, a multi-campus, not-for-profit senior living provider in Michigan. The company has grown its holdings over the past decade, starting development on its Jenison campus in 2009 and completing it in 2015. Then, after completing a market... Read More »
  • Recent Senior Care M&A Deals, Week Ending June 18, 2021

    Senior care M&A is soaring back this month across all sectors. Check out our recent M&A deal chart. Long-Term Care   AcquirerTargetPrice Beacon Health10 skilled nursing facilities in Iowa$24.2 million Regional operator/private capital providerRose Vista in Woodbine and Longview Home in Missouri ValleyN/A Ciena HealthcareLincoln... Read More »
  • Drinking the Kool-Aid in Washington (State), Again

    The people of the state of Washington are getting closer to having to make a decision about a new payroll tax to fund a “long-term” care benefit, that is anything but long term. The 58-cent tax withholding for every $100 of salary and bonus may not seem like much, but the benefit is not much either.  This reminds us (sort of) of the Class... Read More »
Brookdale vs Capital Senior Living

Brookdale vs Capital Senior Living

Not that there is a competition, but since the end of 2020, Capital Senior Living has outperformed Brookdale Senior Living with a price gain of 345% compared with 93% for Brookdale. It helped that Capital Senior was starting from a very low point. But for both companies that is pretty good, and both beat the overall market.   They have both benefitted from the vaccine impact, with increases in leads, tours, move-ins and census. For each of the last three months, Brookdale has posted a 50-basis point increase in month-end occupancy, which is great, but will it be enough?  Investors think they are on the right track, and have pushed the share price up by more than 25% in the... Read More »
Brookdale vs Capital Senior Living

More Good News from Welltower and Ventas

Census is on the rise at the SHOP portfolios of the biggest healthcare REITs. After more than a year of mostly depressing news, it is nice to see that more good news keeps on coming. With a year of canceled earnings forecasts by most public companies and REITs, Welltower announced that it raised the low end of its second quarter earnings per share estimate by nearly 10%, and its normalized FFO by just over 4%. Now that’s some good news! In addition, they had forecast a 130-basis point increase in their SHOP portfolio for the full second quarter, and by June 4th they had already reached 120 basis points. Spot occupancy is now 150 basis points higher than the pandemic low. Ventas is also... Read More »
Brookdale vs Capital Senior Living

What A Feeling!

One big benefit of the country opening up is in-person conferences. It does feel good. Last week, I attended my first conference, in person, since March of 2020. And boy did it feel great! Shaking hands again, hugging people I haven’t seen in person in 15 months, or more, was like a celebration for everyone there. All because we were vaccinated. Thank you, Senior Living 100. I was invited to moderate a panel on, what else, the M&A market. Two weeks earlier, I was a panelist at their sister conference, The LTC 100, but I was virtual, as was one other panelist in my session, and it just was not the same. My two takeaways were that people are pretty optimistic about the comeback for... Read More »
Brookdale vs Capital Senior Living

The 55+ Market Builds Momentum

Coming out of the pandemic, investors are enamored with the 55+ or active adult market, but we will see if that enthusiasm turns into overexuberance. Perhaps the brightest star in seniors housing coming out of the pandemic has been the active adult market, and investors took notice. Census stayed strong relative to the other sectors, and owners tout their lower average move-in age, more approachable rents for residents, lower labor costs and higher operating margins. As a percentage of seniors housing deals announced, according to our deal database, active adult has grown its share from a paltry 2% in 2019 to 6.4% in 2020 and 8.2% so far in 2021. Plenty of firms have also announced... Read More »
Brookdale vs Capital Senior Living

Is Connecticut The Future For Wage Hikes?

In order to avert a strike by unionized nursing home workers, a deal is being struck with the state that will send hourly rates soaring. In order to avoid a union strike at dozens of Connecticut nursing facilities, the Governor stepped in to help the two sides reach a deal. And what a deal for employees. Most hourly workers will have a pay raise set at a minimum of $20 per hour. CNAs will be increased from a $12 to $15 range to $20 per hour, while LPNs will have a minimum of $30 per hour. There are also increases in pension contributions and health and wellness programs. Most of the money will come from the state, with an extra $47.3 million in 2021 and $121.1 million in 2022, all going... Read More »
Brookdale vs Capital Senior Living

Celebrating 30 Years

The American Seniors Housing Association has been supporting the senior living industry for 30 years now, with David Schless at the helm throughout. I fondly remember going to my first annual meeting of the American Seniors Housing Association, back when it was part of the National Multifamily Housing Council. Let’s just say it was quite smaller than it is today, and I have to say, a bit more intimate. If you attended one of those early meetings, you may remember my question to Murry Gunty of Lazard Freres, when in the 1990s he was in the middle of patching together a company that seemed very disorganized, as I outlined his various, unconnected acquisitions. I asked, “So Murry, what’s the... Read More »