• Blueprint Advises Another SNF Sale

    Blueprint Healthcare Real Estate Advisors’ Ben Firestone and Michael Segal recently facilitated the sale of Magnolia Manor, a skilled nursing facility in Inman, South Carolina. Built in 1967, Magnolia has 176 beds, which represents over 40% of the total licensed beds in the local market and twice the capacity of the next largest competitor. ... Read More »
  • The Ensign Group and CareTrust Acquire Two Texas SNFs

    The Ensign Group and CareTrust REIT have teamed up to acquire the real estate and operations of two skilled nursing facilities in the Austin, Texas metropolitan area. CareTrust purchased the facilities for $32.5 million, or about $135,000 per bed, while The Ensign Group recently took over operations effective August 1, 2021 as part of the... Read More »
  • Walker & Dunlop Originates Financings for Four Communities

    Walker & Dunlop Managing Director Kevin Giusti and Senior Analyst Brian Neal recently originated $37.47 million in financing for four assisted living and memory care facilities: Bloom at Bluffton in Bluffton, South Carolina; Bloom at Hilton Head in Hilton Head, South Carolina; Cascades of Tucson, in Tucson, Arizona; and Regency Jackson in... Read More »
  • Newmark Summer Sales Continue

    Late last week, we profiled several of Newmark’s latest closings, but we also said that we were not finished. One deal was referenced in Welltower’s recent earnings release, as the REIT’s purchase of seven senior living communities from White Oak Healthcare Partners finally closed. The communities, averaging more... Read More »
  • Welltower Announces Big Census Gains

    Welltower released its second quarter earnings results, and its growth strategy was on full display with $1.5 billion in pro-rata gross investments from April to June, at an initial yield of 8.8%. That does not even include the largest deal, which was its proposed $1.58 billion acquisition of 86 independent living communities owned... 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 »