• Seniors Housing M&A Market Comes to Life

    Welltower’s recent announcement of two portfolio sales at low cap rates during the pandemic bodes well for the market. It has been a quiet past few weeks in the seniors housing M&A market. Last week was the first time we can remember when we have gone an entire week without one announced acquisition. That leaves us worried as to the... Read More »
  • Newmark Knight Frank Handles Welltower’s $1.3 Billion Sale

    There were rumors circulating last month of a major portfolio sale by one of the healthcare REITs, and given the dearth of deals in May, we clung on to the promise of it. Well, on June 1, Welltower announced not one, but two large seniors housing portfolio dispositions, along with a major medical office building sale, all combined for a roughly... Read More »
  • Two REITs Provide COVID and Census Updates

    Welltower recently disclosed what has been happening at its large seniors housing operating portfolio (SHOP), and we again give them credit for being transparent with investors as to the operating performance of its customers. In the second quarter through May 29, its SHOP portfolio has seen occupancy decline by 420 basis points. That’s the... Read More »
  • May’s M&A Meltdown

    The M&A statistics are in for May, and it was a doozy. Only 19 seniors housing and skilled nursing deals were publicly announced during the month, nearly half of which coming from the first quarter earnings reports of several public companies. Without those, we would have barely made it to double digits. You have to go back to July 2017 for... Read More »
  • Blueprint Closes Another LTC Properties Sale

    After representing LTC Properties in its five-phase sale of a 2,500-bed skilled nursing portfolio, Blueprint Healthcare Real Estate Advisors went back to the well, handling LTC Properties and Senior Lifestyle Corp.’s sale of two large seniors housing campuses in Arizona. The deal closed on April 21, with Humair Sabir, Amy Sitzman and Jacob Gehl... Read More »
Where Occupancy May Be By July

Where Occupancy May Be By July

The coronavirus was much worse then expected, as was its impact on senior care providers. I have to admit I was wrong, but just the third time in 34 years. In late February, I referred to the coronavirus as the flu on steroids, and that the senior care industry was prepared to deal with it. I was wrong on both accounts. It was much worse than anything on steroids, and many providers were not prepared for this one. I am not sure anyone could have adequately prepared for a deadly disease that can be quickly spread by asymptomatic staff and visitors.  Some people think they have escaped the worst part of the coronavirus, and they may be right. But this is not going to be a short-term problem.... Read More »
Where Occupancy May Be By July

Are Nursing Home Residents Really “Sitting Ducks”?

Nursing home residents live there because they are frail and often with major illnesses. As a result, they are more prone to infections than others, with worse outcomes. But don’t call them sitting ducks. We all know that The New York Times has had an issue with the entire skilled nursing sector for many years. They just like to pick on it, and when there is a major problem, they pounce. Much like they did last year with the record HUD loan loss, and now this year with the pandemic. But what really irritated me was the recent front-page headline which included, “Residents Are Sitting Ducks.” Now, this phrase did come from someone they interviewed, but the only thing the reader will... Read More »
Where Occupancy May Be By July

Getting Personal With COVID-19

When COVID-19 hits close to home. So, here we are in week three of shelter in place. Actually, week four for me. Two weeks ago, I was about the only one wearing a mask in one of my two trips to the grocery store. Now most everyone is, which makes sense. On one of the trips, I was actually told by someone that I was not supposed to be wearing one because I was asymptomatic. My how things have changed. I live in a small town of 20,000, and we have had 82 confirmed cases of COVID-19 and 10 deaths. That’s a 12% death rate, and it has been at that rate for the past week and a half, with about one death a day. I assume that 12% rate will come down as more tests are given, but it does seem out of... Read More »
Where Occupancy May Be By July

Capital Senior Living Finally Reports

After a two-week delay, Capital Senior Living reports fourth quarter results, and a little of first quarter. After delaying its fourth quarter earnings release by two weeks, Capital Senior Living finally produced the results. And they were not as bad as we expected. Phew. To be honest, I was thinking it could be so bad that bankruptcy would be floated as an option. Not this quarter. The bottom line is that the fourth quarter was not good, with same-community year-over-year occupancy declining by 290 basis points to 81.4%, and the operating margin falling by 600 basis points to 29%. Both are very large drops in a 12-month time frame. And both are worse than their peer group. The good news... Read More »
Where Occupancy May Be By July

Stock Buybacks vs. Dry Powder

Should REITs be using excess cash to buy back their shares at cheap prices, or wait and go bargain hunting for cheap properties? Good morning. I am in day nine of my 14-day self-quarantine, and have yet to go stir crazy. Apparently, in Connecticut, liquor stores are exempt from the shut-down. Hmmm. While we hear anecdotally that occupancy levels in seniors housing remain relatively unchanged, I do not see how that will remain so in the coming weeks and months. Companies and owners, such as REITs, are just beginning to report confirmed cases of COVID-19, along with the unfortunate deaths. While expected, we still continue to hope they can keep it to a minimum. One thing I am a little... Read More »
Where Occupancy May Be By July

Surviving The Coronavirus

What a difference five days, and 3,200 miles can make, not to mention panic selling in our sector. Well, we certainly are living in interesting times. And not fun times.  I decided to stay with my plans and went to Scotland for a bachelor party last weekend. No kidding. It was fun and was a great bonding experience with my future son-in-law. I hope he feels the same way. The return was hassle free, but it was a different country I returned to from what I left on Thursday night.  School, restaurant, store and theater closings, to mention a few, plus shelter in place orders, added to the panic. And talk about panic. Senior care and healthcare REIT stocks were pummeled more than any other... Read More »