60 Seconds with Steve Monroe: Here I Go Again
Ziegler recently came out with its quarterly analysis of the CCRC market (LPC for the not-for-profit world, but we still prefer to use CCRC), and once again, their performance is rocking. Ziegler uses statistics provided by NIC MAP. CCRC occupancy far exceeds assisted living and independent living communities on average, and not-for-profit CCRCs are performing better than for-profits. In the fourth quarter of 2022, occupancy at NFP CCRCs averaged 88.2%, while for profits were 84.3%. Not bad, right? CCRCs in general performed better during the pandemic than other senior living property types partly because their residents tend to be healthier. This makes sense. Two months ago, I toured a... Read More »
60 Seconds with Steve Monroe: SNFs, Here We Go Again
As long as they keep making some stupid conclusions, I am going to have a say on it. I am talking about the most recent study appearing in Health Affairs blasting PE and REIT ownership for a lack of transparency and a cut in nursing hours after an acquisition. First, I do agree there should be more transparency in general since nursing homes are receiving about 90% of their revenues from the government. But once again, these researchers seem to be missing the point and simply jumping on the Elizabeth Warren and Bernie Sanders bandwagon. Or is it Joe Biden? When a REIT buys a nursing home, it has little say over the operations, but can advise the provider, especially if things go... Read More »
SVB, Signature and the CPI’s Impact on Seniors Housing and Care Lending
The last week could have given many on Wall Street whiplash. The closure of Silicon Valley Bank and Signature Bank by the FDIC led to a selloff in the shares of many regional banks late last week and a panicked weekend for many more, with calls for some government intervention to bail out SVB and Signature to stop the spread of more systemic issues. The Biden administration is obliging with a sort-of bailout of both banks by making their depositors whole and hopefully stemming a depositor panic across the country’s banks. And as of Tuesday, stocks for many regional banks started to rally, albeit remaining below their levels before the sell-off. The ordeal, plus favorable CPI data released... Read More »
60 Seconds with Swett: Impressions of the Spring NIC Conference
Around 1,900 seniors housing operators, investors, brokers, lenders, appraisers and other service providers met in San Diego last week for the Spring NIC Conference, and we wondered before what the mood would be in the room. In our scores of conversations with those in the nitty gritty of dealmaking and operations, we’d say it was a little bit of a downer. Most people are working on half the number of transactions but spending double the time on each one, which isn’t as fun a combination. But everyone is doing their best under the circumstances, and pipelines are still looking reasonably healthy. Operators continue to slog through a myriad of issues, including agency staffing, which is... Read More »
60 Seconds With Swett: Another Somber NIC?
What mood are we in for at this year’s Spring NIC in San Diego? The latest consumer spending data from the Commerce Department showed persistent strength in the economy, boosting the chances of perhaps another 50-basis point increase in the fed funds rate at the next Fed meeting. What will that do to investor and lender sentiment? It’s not as though they are operating in new territory, having dealt with successive 75-basis point increases last year. But scrutiny on deals will increase, prices should fall, and fewer deals could be consummated by the fewer growth-oriented, deep-pocketed buyers out there, in addition to the strategic buyers with local or regional banking relationships to lean... Read More »Schedule a demo
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