The Latino Factor
Latinos are the fastest growing worker cohort, but like all workers, they need more education and training. So do seniors housing workers, if we want to keep them. I read an interesting article from the Wall Street Journal over Labor Day Weekend titled “The ‘Latino Factor’ Will Save America’s Economy.” The gist of it was that the Latino population in the U.S. is the fastest growing cohort in the labor market and will play an increasingly important role in the economy as the baby boomers age. Seniors housing providers would probably agree, as many Latinos are care providers in their communities, and they would like to hire more of them. But the article argued that what is needed is... Read More »
Record-Setting M&A Month
Over the last seven years, August has averaged just 25 acquisitions. We are already 50% above that, and still counting. As the dog days of August come to an end, is there anyone still working away before Labor Day? I have to say, the healthcare M&A market has been quite active this summer. In the seniors housing and care market, we are closing in on a record month of activity. As of yesterday, we have tracked 37 acquisitions in August, equal to the 37-deal record set in 2015 for the month. With a few days left to go, I am confident that we will shatter that record. That means that the private market continues to have a lot more confidence in the industry than the public markets. With... Read More »
Record Sale Price
Brookdale Senior Living has agreed to sell its trophy community in New York City at a record price to Ventas, but will keep the management. Anyone who heard former Brookdale Senior Living CEO Mark Schulte address the ASHA annual meeting in the aftermath of 9/11 will never forget it. He talked about their newest project in lower Manhattan. There was nary a dry eye in the room. The community, called The Hallmark at Battery Park at the time, was still in fill-up, covered in inches of dust and debris, and had to be evacuated. The industry at other communities pulled together, took in as many Brookdale residents as possible, not knowing how long they would stay, not knowing how they would get... Read More »
Brookdale vs. Land & Buildings
Jonathan Litt of activist investor Land & Buildings has sent yet another letter to Brookdale Senior Living shareholders, still calling for a sale of the real estate. It appears that Brookdale Senior Living is at the early stages of righting its ship. And, activist investor Jonathan Litt of Land & Buildings has been complimenting management for its actions in the past year. But he still is not happy. Who could blame him with Brookdale’s share price still in the toilet at under $8.00 per share. He continues to believe the market is not recognizing the inherent value in Brookdale’s owned real estate, to which we continue to say, that is not how the market should value an operating... Read More »
Rolling Four Quarters Multiples
It has certainly been a busy year in the M&A market, with transaction volume on pace to top last year’s, according to The Senior Care Acquisition Report. Despite all the headwinds and headline issues, buyers are still very active, and in many cases paying top dollar for the assets they want. The independent living market remains the strongest, with the average price per unit rising to $241,300 for the 12 months ended June 30, 2018, or 5% higher than in calendar year 2017. The average cap rate was 7.2%. The assisted living market, where all the excess development has been, dropped by 5% to $209,100 per unit for the 12 months ended June 30, compared with last year. The average cap rate... Read More »Schedule a demo
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