Getting Personal With COVID-19
When COVID-19 hits close to home. So, here we are in week three of shelter in place. Actually, week four for me. Two weeks ago, I was about the only one wearing a mask in one of my two trips to the grocery store. Now most everyone is, which makes sense. On one of the trips, I was actually told by someone that I was not supposed to be wearing one because I was asymptomatic. My how things have changed. I live in a small town of 20,000, and we have had 82 confirmed cases of COVID-19 and 10 deaths. That’s a 12% death rate, and it has been at that rate for the past week and a half, with about one death a day. I assume that 12% rate will come down as more tests are given, but it does seem out of... Read More »
Capital Senior Living Finally Reports
After a two-week delay, Capital Senior Living reports fourth quarter results, and a little of first quarter. After delaying its fourth quarter earnings release by two weeks, Capital Senior Living finally produced the results. And they were not as bad as we expected. Phew. To be honest, I was thinking it could be so bad that bankruptcy would be floated as an option. Not this quarter. The bottom line is that the fourth quarter was not good, with same-community year-over-year occupancy declining by 290 basis points to 81.4%, and the operating margin falling by 600 basis points to 29%. Both are very large drops in a 12-month time frame. And both are worse than their peer group. The good news... Read More »
Stock Buybacks vs. Dry Powder
Should REITs be using excess cash to buy back their shares at cheap prices, or wait and go bargain hunting for cheap properties? Good morning. I am in day nine of my 14-day self-quarantine, and have yet to go stir crazy. Apparently, in Connecticut, liquor stores are exempt from the shut-down. Hmmm. While we hear anecdotally that occupancy levels in seniors housing remain relatively unchanged, I do not see how that will remain so in the coming weeks and months. Companies and owners, such as REITs, are just beginning to report confirmed cases of COVID-19, along with the unfortunate deaths. While expected, we still continue to hope they can keep it to a minimum. One thing I am a little... Read More »
Surviving The Coronavirus
What a difference five days, and 3,200 miles can make, not to mention panic selling in our sector. Well, we certainly are living in interesting times. And not fun times. I decided to stay with my plans and went to Scotland for a bachelor party last weekend. No kidding. It was fun and was a great bonding experience with my future son-in-law. I hope he feels the same way. The return was hassle free, but it was a different country I returned to from what I left on Thursday night. School, restaurant, store and theater closings, to mention a few, plus shelter in place orders, added to the panic. And talk about panic. Senior care and healthcare REIT stocks were pummeled more than any other... Read More »
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 »Schedule a demo
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