Capital, Capital Everywhere
After attending two conferences focusing on two different healthcare real estate sectors, it is all about capital. Having just returned from two different conferences in Florida, the one conclusion I can draw from both of them is that there still is way too much capital looking for yield. One, the Revista-sponsored medical real estate conference, was mostly focused on the medical office building market, which transacted more than $13 billion in investments last year. Who would have thought? The other was the American Seniors Housing Association’s annual meeting, which had record attendance with a lot of “deal talk” going on. One industry veteran told me he was only talking to architects... Read More »
Elmcroft Senior Living Portfolio Completes Transition
Ventas has officially transitioned management of its Elmcroft portfolio to newly-formed Eclipse Senior Living. It is now official. The operations of the Elmcroft Senior Living portfolio of 76 properties, with the real estate owned by Ventas, has officially been transferred to Kai Hsiao’s new company, Eclipse Senior Living. Ventas has acquitted a 34% interest in Eclipse, with the remaining 64% being held by Eclipse management, which now includes Shamim Wu, Kai’s former colleague at Holiday Retirement Corporation. She recently did a 10-month stint as president and COO of Silverado. This will be an interesting test, since the Elmcroft portfolio was obviously having some financial problems... Read More »
Occupancy Woes Continue For Seniors Housing
Fourth quarter NIC MAP data for seniors housing occupancy had little good news before the flu season may decimate again. We are going to have to wait until mid-February or so to start hearing how individual seniors housing companies fared with occupancy in the fourth quarter. Our guess, however, is that it will only go downhill from there. According to NIC MAP, occupancy basically remained flat from the third quarter to the fourth, which was expected. But that means, given the bad flu season this year, the first half of 2018 could be pretty bad for occupancy. Without an increase in the fourth quarter, there may be a lot of ground that will need to be made up in the second half of 2018,... Read More »
When Profits Trump Care In SNFs
One family wins a $30 million verdict after citing irresponsibly poor care. In case you missed it, The New York Times had yet another expose on the skilled nursing sector, this time blaming private companies for setting up separate entities that provide services, allegedly at higher prices than market, so their profits do not appear on the facility’s P&L. One such company accused of using this strategy lost a lawsuit with a $30 million verdict after family members came in one day, removed their mother’s sock, and her foot looked like black charcoal. She soon went to the hospital and had her leg amputated above the knee. This is just plain inexcusable, and while there are always claims... Read More »
Senior Care Stocks Swoon….Again
The 2017 Trump rally has left senior care and healthcare REIT stocks behind. It looks like the so-called Trump stock market rally is continuing into 2018. Weirdly, several senior care stocks shot up in the first day of trading yesterday. Where were investors last year? Unfortunately, 2017 was about as bad as it gets for our sector. Only one company posted an increase in price, and that was Kindred Healthcare, which is actually exiting our sector with its last sales of its SNFs. So, everyone else declined, and almost all of them by double digits, in a year when the rest of the market posted extraordinary returns. The NASDAQ Composite was up 28.2%, the Dow was up 25.1% and the S&P 500... Read More »Schedule a demo
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