60 Seconds with Swett: Welltower Is on a Roll
Welltower came out with its first quarter earnings on Tuesday, and surprise, surprise, it was yet another great quarter, and its share price jumped 3.5% immediately upon the news. It was the tenth consecutive quarter in which same store SHOP NOI growth exceeded 20%, at 21.7% in the first quarter. Guidance for same store NOI growth also rose by 100 basis points to a midpoint of 19.0% for FY2025. On Tuesday’s call, Welltower did mention that SHOP margins remain below pre-pandemic levels, but they may not be for long. Also, that issue currently plagues thousands of communities in this country and was prevalent in the years before COVID too. Perhaps that is why most of what we hear from... Read More »
60 Seconds with Swett: April Already Passes 50 Transactions
Tariff turmoil? Volatile and still-high interest rates? Uncertainty surrounding Medicaid spending, labor costs and HUD’s queue length? Seniors housing and care dealmakers have looked past a lot of this noise to announce 50 transactions in the first three weeks of the second quarter, putting the market on track for the busiest M&A period ever. We know we sound like a broken record, but the start of April did feel like we reached a new level of activity, and given the conversations we’ve been having in the last few weeks, the second and third quarters may only accelerate in deal volume. For some sellers, seeing through the January 2025 rate increases was enough to enter the transaction... Read More »
60 Seconds with Swett: Adapting to the 2025 M&A Market
The M&A market is slowly shifting, with increased liquidity, further stabilizing operations and some larger and higher quality deals hitting the market. Perhaps things are not moving as quickly as some want, and cap rates are not compressing enough to attract certain sellers to the market. But interest rates have been the major drag on dealmaking, values and lending, and the recent chaos around tariffs did not help. So how are dealmakers taking advantage of the current market dynamics? When does it make sense to sell a Class-A stabilized asset these days if cap rates are not where they were several years ago? And what is going on in the debt markets that potential buyers need to be... Read More »
60 Seconds with Swett: Medicare Advantage Sees A Pay Bump
As the healthcare industry braces for whatever impacts tariffs may have on operations, an impossible task to predict accurately given the flux on that matter, providers also are welcoming a new head of CMS, Dr. Mehmet Oz, who was confirmed by the Senate last week. There is some uncertainty on how the Trump Administration will treat healthcare providers overall, specifically in the senior care industry, with some positives coming from the end of the minimum staffing mandate and an overall friendlier business climate, versus the threat of increased scrutiny on Medicare and Medicaid spending with respect to fraud and abuse potentially contributing to falling revenues. When reading the tea... Read More »
60 Seconds with Steve Monroe: Here We Go Again
Investigate, investigate, investigate. Regulate, regulate, regulate. Why not assist? Why not help? Why not try to understand? Liz, Ron and Kirsten, of U.S. Senate fame, have asked the GAO to investigate the assisted living industry and to see if federal oversight is needed. Really? Are we going down this road again? How did that work out for the nursing home industry? As we know, the assisted living sector is predominantly private pay, unlike nursing homes, but the senators are using information from state Medicaid agencies to back up their claims. I suppose I could see them investigating any assisted living community that is receiving Medicaid funds to make sure the money is wisely spent,... Read More »Schedule a demo
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