Monday’s Massacre
Providers got hurt in Monday’s stock market massacre, but healthcare REITs across the board suffered. We all know that Monday’s massacre in the stock market affected almost all companies. In our sector, the focus has been on providers, since they take care of the highest-risk people as this coronavirus/Covid-19 epidemic spreads. The unprecedented 2,013-point drop in the Dow was bad enough, and providers plunged as well. But so did the healthcare REITs that own their properties. Most of the REITs in our universe dropped by double digits, compared with 7.8% with the Dow and 7.6% with the S&P 500. Diversified Healthcare Trust plunged the most, falling 17.7% on Monday. It was... Read More »
When in Need of Renovations
How often have you heard that the vast majority of skilled nursing facilities need substantial renovations in order to compete? Now, we are hearing it about all those assisted living communities built in the 1990s, and even the early 2000s. All of the new development in the past six or seven years has really caused owners and operators to take a hard look at their real estate and decide what to do. What needs to be done to compete and how much will it cost? One of the nice things about going to a NIC conference is meeting new companies and people. One of the companies we met with, South Coast Improvement Company, specializes in renovating senior living buildings while the residents are... Read More »
NIC San Diego and The Coronavirus
Despite several cancellations we have heard of, we will be at NIC in San Diego to see you and talk deals. Good morning NIC attendees, at least those of you who decided to brave the coronavirus, which is here, in San Diego. I shouldn’t make light of it, as this virus is a killer, and if it is not contained, could do significant harm to the entire senior living industry. Perhaps in a way worse than even the worst flu season, but on steroids. Unfortunately, we have heard over the past several days of people canceling their trip to NIC, and entire companies telling their employees not to travel by air for business, even if they already had meetings set up at a conference such as NIC. Well, I... Read More »
60 Seconds With Steve: Best Time to Borrow is Now
In 60 Seconds With Steve, he discusses that even with tumbling stocks, the best time to borrow would be right now. I guess the markets are finally taking the coronavirus seriously. The worst may yet to come, at least for the virus. Monday’s more than 1,000-point plunge in the Dow shocked a lot of people, but we need some perspective. That drop is just over 3%, not that much of a plunge when you put it into a historical perspective. On October 19, 1987, after just one year in the senior living business, I checked into a hotel in Pennsylvania for a state conference. I turned the TV on and saw the merely 508-point drop in the Dow on the screen. But that was a 22.6% plunge. Think of that:... Read More »
Can We Be Inspired?
High-end urban senior living may be the next big thing, but it will not be cheap. So, I was on a train Monday heading out of New York City and I looked up and saw an ad on the wall with a big “Senior Living” in the middle. Of course, it caught my attention. So I walked up to it and saw that it was an ad for the new Inspīr at Carnegie Hill being developed by Maplewood Senior Living and Omega Healthcare Investors on the Upper East Side of Manhattan. Construction started in June 2017 and it is supposed to open at the end of this quarter. With 23 floors, 212,000 square feet, 215 units and at an initial cost estimate of $285 million, it will be the most expensive assisted living community ever... Read More »Schedule a demo
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