60 Seconds with Swett: Memory Care Still Commands a Premium
We are just a couple of days away from publishing the 29th Edition of The Senior Care Acquisition Report, which is available to all LevinPro LTC and LTC News subscribers as part of their subscriptions, and the impact of the capital markets upheaval on valuations affected nearly all property types in 2023. Still, a few historical norms remained. For instance, as they usually do, buyers placed a premium on memory care, whether standalone or as a portion of an assisted living community, over traditional AL properties in 2023, averaging $168,700 per unit versus $95,700 per unit, respectively. Both are down from their 2022 averages, according to the Report. Yes, these communities with memory... Read More »
60 Seconds with Swett: Where Are Senior Care Property Values Now?
Where do values stand for seniors housing and care properties after more than a year of capital markets upheaval and persistent, post-pandemic operational challenges? Well, after an exhaustive study of our proprietary M&A statistics, we will be previewing the results of the 29th Edition of The Senior Care Acquisition Report in a webinar this Thursday February 22 at 1pm Eastern. In addition, our distinguished group of panelists will discuss the market dynamics informing buyers and sellers’ decisions then and now, how the lending environment shifted and shaped M&A strategies, whether a wave of distress and defaults is at last on its way in 2024, and their own predictions for... Read More »
60 Seconds with Swett: SNF Values Drop
We are in the middle of compiling our 2023 M&A statistics for the soon-to-be-released 29th Edition of The Senior Care Acquisition Report, and the difficult year that was 2023 is coming clearer into focus, at least from a valuation perspective. We’ll preview the skilled nursing market first, which remained relatively strong despite the numerous headwinds facing the sector. On the other hand, some of the tailwinds like rising reimbursement rates, falling supply of licensed beds and revenues from related ancillary businesses have helped prop up valuations. We heard consistently throughout 2023 that values for SNFs had dropped between 10-15% from their peak around 2021 and early 2022, BUT... Read More »
60 Seconds with Swett: January M&A Activity Hits a Recent High
If many are hoping for a fundamental shift in the M&A market in 2024, either for more activity, larger deals or Class-A, stabilized properties hitting the market, then January may have offered a glimmer of hope. We recorded 61 publicly announced transactions across the seniors housing and care sectors, according to LevinPro LTC. That is the highest monthly tally since January 2022 when 64 deals were made public. Back then, for some perspective, the 10-year Treasury rate averaged 1.76% that month, as opposed to around 4.0% last month. And liquidity was vastly different, too. There are also always December closings in the January total, which goes by announcement date, but that is true... Read More »
300 Seconds with Steve Monroe: Here We Go Again
Whenever there are headlines about anything in senior care, we can always count on Senate hearings, with a lot of unfounded accusations and unrealistic recommendations. This usually leads to a new commission being formed, the results of which are delivered a year later in 300 pages that no one reads, except perhaps Richard Mollot of the Long Term Care Community Coalition. But that is his job. It is doubtful Liz Warren will read it. Let me start with Richard Mollot, who apparently claimed at the January 25th Senate hearing that there is a crisis in assisted living, and compared assisted living today with nursing homes in the 1970s and 1980s. Really? Did he ever go into a nursing home back... Read More »Schedule a demo
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