Capital Senior Living and Brookdale Still In Price Tank
Stock values still hitting lows, but not cheap enough for big buyers to come in. I am not sure if you have been following it, but Capital Senior Living’s share price just hit a new low yesterday. In fact, the market value of the company is just $110 million. Think about it, some individual assets have traded at prices above this, and while the $110 million does not include the debt on its books, there have got to be buyers putting pencil to paper. Brookdale Senior Living is not faring too well either. But they aren’t buying into the low valuations, at least for now. The question remains, if things are not going to be much better six months from now, why buy shares now? You may as well... Read More »
Immigrants and Minimum Wage
Some board and care homes are giving the senior care business a bad name in their mistreatment of immigrants. There is an ugly side to immigration and low-wage workers in the senior care market. Bad people exist everywhere, and it is as difficult to keep them out of our business as it is in any other. There was a recent story about small board and care homes, usually under 10 beds, where immigrants work, usually 12 hour shifts or more, and often 6 to 7 days a week. And they often stay overnight to be “on call.” And that, apparently, happens a lot. And a large portion of these board and care homes are in California. There are some good ones, but it is the bad ones that get all the bad PR.... Read More »
The Forgotten Middle
There may be more than 14 million boomers that will not be able to afford seniors housing plus their health care needs. It is time to address the issue. We have been saying it for years. The largest unmet need in seniors housing is the bulging middle income cohort, which some researchers have defined as between the 40th and 80th percentile in terms of financial resources. In other words, the largest cohort. When they really start to need it in 10 years, more than 14 million seniors will not be able to afford the current assisted living or independent living models, plus the other health care needs they will have. Unfortunately, this has not been a secret. But it is one that has largely... Read More »
Active Adult Communities – The Future?
Active adult communities are taking on a new role in the senior living continuum, and new ones are sprouting up. Find out who is buying and selling, at what cap rates, who is developing and why, and how these communities may evolve. You have all been hearing the chatter about active adult communities, something that has been around for several decades but is taking on new meaning, and significance. Next week, we will be hosting a webinar on this topic, where you can find out who is buying, selling, and at what cap rates, the risk of building today and what demographic they are really focused on and why. Will these newly developed active adult communities, with few amenities, be the... Read More »
Class Act for Washington State?
Washington has passed its version of a long-term care insurance bill, sort of, using a payroll tax to fund it. Unlike the misconceived Class Act that was originally part of the Affordable Care Act, which was designed to rob Peter to pay Paul, Washington State has just passed its own version, The Long-Term Care Trust Act. While the intent is worthy, I don’t think it will accomplish its goals. As now passed, the Act will be funded by a payroll tax of 58 cents for every $100 of salary. For someone making $20 per hour, that comes to about $240 per year, and they can least afford it. I have seen no mention of an employer match, but I am sure that is coming. The sponsors claim that family... Read More »Schedule a demo
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