60 Seconds with Swett: Welltower Grows Its Stake in Active Adult
Active adult’s meteoric rise has been a sight to see, and Welltower seems to have its eyes trained on the sector too. In a business update, the REIT revealed a major acquisition of 25 active adult communities, including 18 open and stabilized communities, two in lease up and five under construction, for a total of $502 million, or $172,000 per unit. The communities cater to the middle market, with rents averaging $1,300 a month, and the properties are in secondary and tertiary markets. Given what Welltower paid for the communities, and what the portfolio could be earning based on full occupancy, it seems they got a good deal, but we wonder exactly how much of a rent increase their current... Read More »
60 Seconds with Steve Monroe: Do We Really Have To Worry About A Recession?
We just can’t seem to get a break. Just as we are coming out of the pandemic morass with some decent census increases since March of 2021, now we have to worry about a looming recession and stagflation. Many people in the sector have only seen a growing economy in the past decade and inflation rates hovering between zero and 2%. Stagnation? Never heard of it, well, not for a few decades at least. As a result, we thought we would take a look at what happened to the senior care sector in the last major recession in 2008-2009, as well as the mini-recession in 2020, and see what exactly happened in our sector and what might happen this time around. What we concluded is that... Read More »
60 Seconds with Swett: Occupancy Optimism in the Seniors Housing Market
When we did our analysis of NIC MAP census data in late 2020, we discovered that from 2009 to 2020, there was only one year when the assisted living sector did not report a Q1 decline in average occupancy. That was in 2012, when census stayed flat. Not only that, every year after 2012 reported a Q2 decline as well. All this showed us that the road to recovery for the seniors housing market would be long following the pandemic, and much longer than most optimistic predictions at the time. Last year’s first quarter continued the trend, as the industry bottomed out and most public providers hit their lows too. Although, vaccines had only just started being distributed to seniors, and there... Read More »
60 Seconds with Steve Monroe: Labor Headwinds Everywhere
In case you did not notice, practically every equity analyst report we read on healthcare companies in the past four weeks had “labor headwinds” either in the title or the first paragraph. And I am not talking about senior care companies. These were home health, managed care, PMGs, you name it. Providers just can’t find the staff they need, and when they do, it is expensive. But you know that. Perhaps if we enter into a small recession that will help with the labor shortage, but don’t hold your breath. I’m not. We have a systemic problem, and it needs major changes if it is going to be fixed for the senior care industry. And the senior care industry must be a leader on the labor front to... Read More »
60 Seconds with Swett: Best Senior Living List Is Revealed
U.S. News & World Report came out with its first ever “Best Senior Living” list on Tuesday, creating new designations of Best Independent Living, Assisted Living, Memory Care and CCRCs. U.S. News and its survey provider, Dr. Jacquelyn Kung’s Activated Insights, administered satisfaction surveys at 3,045 communities throughout the country between March 2021 and February 2022, evaluating four basic categories: community & activity, food & dining, caregiving, and management & staff. Also, family responses were taken into account for assisted living scores, and memory care community scores were derived solely from family surveys. Residents tended to respond more positively than... Read More »Schedule a demo
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