To Settle Or Not to Settle
Sometimes, when people search for problems at a senior living provider, it just gets absurd. I read this week a story in McKnight’s about a senior living provider who was sued and settled on a payment of a few hundred thousand dollars for the “crime” of not having sign language interpreters available. My reaction was, you’ve got to be kidding! No one had asked for sign language interpreters, but apparently someone went in “undercover” and found out they were not available. Imagine that. Obviously, I have nothing against the deaf, and my hearing is beginning to go, but to be coerced into forking over a few hundred thousand dollars for not having a service that was not asked for, well, this... Read More »
The Big Deals Are Upon Us Again
Sabra Health Care REIT and Care Capital Properties announced their merger in a somewhat negative SNF market for REITs. When I wrote the lead story for the May issue of The SeniorCare Investor talking about the return of the “Big Deal” to the market, I hope you didn’t think I had any inside information. Just days after it was published, Sabra Health Care REIT and Care Capital Properties announced their merger. I had written that a REIT buying a smaller REIT could make sense, except that one of the problems with that type of deal is that you end up with a certain amount of unwanted assets. That said, the transaction makes a lot of sense for both REITs. Separately, their cost of capital was... Read More »
New Senior Care M&A Data
Assisted living per-unit prices rise for the latest four quarters, while skilled nursing remains the same. It was a relatively slow first quarter with regard to publicly announced seniors housing and care acquisitions, other than some old large deals announced last year that finally closed in the quarter. On a rolling four quarters basis, the average price for assisted living jumped to $210,300 per unit for the period ended March 31, compared with $193,650 per unit for calendar year 2016. The average cap rate remained at 8.5% but with an obvious wide range. Meanwhile, independent living did the reverse, dropping to $208,900 per unit for the four quarters ended March 31 compared with... Read More »
Kindred Healthcare For Sale, Or Not
Kindred Healthcare disclosed that at least one buyer was in early talks to buy the entire company. Don’t you just love rumors? Last week, Kindred Healthcare disclosed that they were well on their way to divesting their remaining skilled nursing facilities, as planned, mostly in groups of facilities to different buyers. But we have also heard there was someone interested in the entire portfolio. Kindred also revealed that someone was in early discussions to buy the entire company. The shares jumped 15%. Now, readers may remember that we have been saying for some time now that the stock was undervalued, and that the components were worth well above the current market cap. Others do not... Read More »
Independent Living Market Outperforms
First quarter data from NIC MAP shows IL occupancy again exceeding assisted living, but with less new development. What is it about the independent living community market that keeps occupancy more stable than assisted living, yet sees a much lower level of new development? In the latest NIC MAP data on the first quarter, the IL market outperformed the AL market again, even though IL occupancy did slip a bit sequentially and year over year. I have a hard time understanding why there is not more development in the IL side of the business. Yes, they are larger properties that require more capital and a longer fill time, but it just seems they can be more tailored to any market’s particular... Read More »Schedule a demo
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