Missing Out On Bad News
A vacation is a horrible thing when bad news hits the market. It is a horrible thing to go on vacation when all sorts of things are happening in the market, but such was the case last week. What I missed was the roll-out of earnings and the very disappointing occupancy numbers. For some, they were worse than the weak results posted for the second quarter by NIC. The ubiquitous villain was the tail of last winter’s flu season. But it seems the seniors housing sector is surviving on a two steps backward, one step forward cycle, and not making up much ground. What still amazes me is that the warning signs were there in abundance well over a year ago, yet too many people ignored them. Leading... Read More »
Home Health Under New Pressure
New proposed reimbursement rules sent Kindred Healthcare and other home health stocks plunging, but it is necessary? Well, the home healthcare industry got hit with a jolt last week with proposed new reimbursement rules. The news sent Kindred Healthcare’s shares down 15%, which especially hurt since they are completing their exit from the skilled nursing business, and home health and hospice is taking on an increasingly important role at the company. What I find extremely annoying is that, on the one side, the government and elder care advocates continue to push for at-home supports and services, and just as health care providers are gearing up for it, the government seems to take away any... Read More »
No Deal For Brookdale Senior Living Yet
Brookdale Senior Living remains in a rut, and the Chinese option may be disappearing. For some reason, Brookdale Senior Living has kept out of the news recently, which is a good thing. What’s not so good is that its share price continues to be stuck in a rut. What also is not so good is that with the recent second quarter occupancy numbers out of NIC, we have to assume that given Brookdale’s size, their occupancy levels contributed to the downward trend in occupancy. Also not good. Everyone continues to wait on news of a buyer for Brookdale to come forward. The Chinese card seems to be disappearing given that the U.S. authorities are scrutinizing Chinese sponsored acquisitions more... Read More »
Is The Carlyle Group Going To Sell HCR ManorCare?
While we are sure Carlyle would like to divest HCR, they may sell their German SNF company first. Okay, so is The Carlyle Group going to sell its HCR ManorCare portfolio company or not? Well, we may not know that answer for a few weeks, maybe days, but the large PE firm is on the move to dispose of other nursing facility assets. Just not in this country. Apparently, Carlyle is planning to sell its German nursing home company, Alloheim, which is the third largest nursing home company in Germany with more than 124 facilities in 2016. Carlyle bought it in 2013 for about 180 million euros when the company had just 49 facilities, up from 13 when London-based private equity firm Star Capital... Read More »
HCR ManorCare Fails To Pay Rent, Again
Quality Care Properties receives partial rent payment for the second month in a row, triggering a notice of default. In our June issue of The SeniorCare Investor, we laid out the issues in the battle between Quality Care Properties and HCR ManorCare, including the partial rent that HCRMC paid on June 1. The battle escalated this week when HCRMC paid just $8.2 million of the $39.5 million it owed QCP for July rent. Quality Care sent a notice of default demanding payment of all current and past due rent by July 14, which comes to $79.6 million. I don’t think they will comply with the demand. Otherwise, why waste everyone’s time with these partial payments? Is this gamesmanship on the part of... Read More »Schedule a demo
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