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 »
60 Seconds With Swett: Soaring Skilled Nursing Values
We are starting to stand back and assess the 2022 M&A market for our soon-to-be-published Senior Care Acquisition Report, and joining us today, February 22 at 1pm ET for our webinar will give you a preview of those statistics and analysis on the seniors housing and skilled nursing markets, but we want to kick things off with a look at the average price per bed paid for SNFs last year. Last year was arguably the strongest market for SNFs in history, with well capitalized buyers, among them private real estate investment firms, family offices and regional owner/operators, creating incredibly active bidding environments for facilities of all qualities and profitability. And that was... Read More »
60 Seconds With Swett: 2022 M&A Results and Valuation Statistics
As we look back on 2022, in terms of M&A, it was a tale of two years, split by a low-interest rate environment in the first half and high rates in the second half which killed many deals and sunk most property values. Signs from the Fed point to interest rates remaining around this elevated level, or even higher, for most of 2023, so the M&A market of this year will likely look very similar to the market of the second half of last year. So, it could be helpful to know where did values settle across the different sectors and property types last year? How did a property’s age, quality, occupancy, operating margin or location affect its valuation? How have buyers’ strategies shifted... Read More »
60 Seconds with Steve Monroe: Why the SNF Investment Market Is Strong
The annual eCAP Summit in Florida has come to an end, and with more than 1,500 attendees, let’s just say there is a lot of interest from investors. The mood, however, was a bit more subdued than last year, according to our editor who attended. But does the investment interest make sense when the American Health Care Association continues to claim that if things don’t change, 52% of nursing home operators may not make it past this year? And 55% of AHCA’s members responding to a survey say they are operating at a loss. The problem is that no one identifies what a “loss” is. If a “net loss,” then it is after all capital costs and non-cash depreciation expense. But why the loss? And why buy... Read More »
60 Seconds With Swett: Assessing Industry Sentiment at ASHA and eCap
It was great to see so many in the industry in Scottsdale last week at ASHA’s annual meeting, but we can’t say the mood was as positive. Some industry veterans didn’t sugarcoat it and commented to us that we are in the most difficult operating environment they have ever seen. Tough to argue with that. Then you had dealmakers fresh off of a myriad of deals postponed, terminated or re-traded, with only a tiny fraction of transactions closing without issues. Then you have other problems like soaring property insurance costs that can throw a wrench in a deal, to put it mildly, and will be a bigger issue when the time comes for hundreds of properties to renew their policies. We will dive deeper... Read More »Schedule a demo
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