60 Seconds With Ben Swett: Assisted Living – Where Are Values Now?
More than seven months into 2021, assisted living communities have been the most popular targets in the M&A market, representing a plurality, or 41%, of all transactions in the year, so far. Average prices have also risen compared with last year, according to our in-house statistics. But we still have many questions about the market’s fundamentals, what is motivating investors, and how different facilities are being valued today. Has pent-up demand already exhausted itself for this need-based product? Is the recovery meeting expectations, particularly for cash flow rather than just census? Are stand-alone communities preferred, or a continuum of care? These types could be valued very... Read More »60 Seconds With Steve Monroe: Capital Senior Living Butting Heads
Transcript A few weeks ago, we wrote about the proposed recapitalization of Capital Senior Living. This will give effective control to the investor, Conversant Capital, and result in a lot of dilution to existing shareholders. The investment is also very expensive. We thought that Cap Senior may have had no other choice: either this or face a major liquidity crunch, and possibly bankruptcy. One investor, Ortelius Advisors, with just under a 10% interest, thinks differently, and blasted management in writing. They think there are other ways to recap the company, and that other like-minded shareholders would be willing to help out financially as well. This may all be true, but where were... Read More »60 Seconds with Ben Swett: A Strong M&A Start to August
Transcript We know the market really turned a corner this June when 45 deals were announced after a rather tepid Spring, including three of the largest transactions seen in multiple years. And we’ll be talking about the importance of that month in the upcoming issue of The SeniorCare Investor. Even July, when many of us hit the beach, or would like to, an impressive 35 transactions were publicly disclosed. But it appears that strength will continue into August, as 18 separate transactions have been announced in just the last few days. And we know of a couple of confidential transactions that could have boosted that number even more. August’s M&A total will only grow as public companies... Read More »
60 Seconds with Steve Monroe: How Many Waves Can There Be?
Just when we thought we were emerging from the pandemic crisis, the news seems to be getting worse about this Delta variant. The good news, at least for seniors housing providers, is that it is a much younger population that is getting hit, not senior care residents because they are almost all vaccinated. Hellooooo. A few months ago, we wrote that the southern, and maybe southeastern region would lead the census charge from the lows in March. Unfortunately, the positivity and hospitalization rates with the Delta variant have been the highest in the southern states, with Florida, Louisiana, Arkansas and Missouri leading the way, and not in a good way. The region also suffers from some of... Read More »
60 Seconds with Ben Swett: National Health Investors Issues Another Positive Occupancy Update
Transcript Inflation worries and fears surrounding the delta variant took the stock market and publicly traded senior care companies on a bit of a roller coaster the last couple of days, but we were also delighted to see some positive news come from National Health Investors. From May to June, the REIT saw its occupancy jump across its three major operating partners. The nine SLC properties rose 50 basis points to 79.1%, Bickford’s 42 properties saw a 90-basis point increase to 78.2%, and the 26 properties operated by Holiday Retirement saw census rise by a more modest 20 basis points to rest at 74.1%. Still a long way to go, and we’re not sure what kind of rent discounts are being... Read More »Schedule a demo
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