60 Seconds with Swett: Cap Rates Coming Down?
Cap rate data has been difficult to measure in the last couple of years, due to a fast-changing capital costs environment, a relatively fast-changing operating environment and, frankly, a relative absence of true “cap rate deals” where the buyer was valuing the trailing set of financials, without any funny business. Now, we are seeing more “cap rate deals” and look forward to providing our industry averages, broken out by property type, quality, age and performance in our next Senior Care Acquisition Report. Anecdotally, what we are hearing is that cap rates are compressing slightly, but in the grand scheme of things, are staying relatively high relative to the record (and some may say... Read More »
60 Seconds with Swett: Another Year Down, and A Lot To Be Thankful For
It was another chaotic year, as has been the norm post-COVID, but we still have a lot to be thankful for. The seniors housing and care industry continues to show remarkable resiliency in the face of inflation, staffing crises, and countless negative attention in the media and among politicians. We are thankful for the thousands of caregivers furthering the mission every day of serving our seniors and making the last years of their lives fruitful, happy and well-spent. We are thankful to the capital providers who stuck with the industry through the bad times, injecting much-needed funds into aging physical plants and financing as many acquisitions as they did, giving us plenty to... Read More »
60 Seconds with Swett: Dr. Oz to Lead CMS?
Here is a sentence we never expected to say. Dr. Mehmet Oz will in all likelihood be the next head of the Centers for Medicare and Medicaid Services. He was tapped by President-elect Trump, who said in a statement that Oz would “cut waste and fraud within our Country’s most expensive Government Agency” and would see that “we get the best results in the world for every dollar we spend on healthcare in our Great Country.” At this point, we are not sure what “cutting waste in fraud” could mean within CMS, and who would be at the other end of those cuts, or how operators in the senior care world might have to change their way of business. But Dr. Oz also represents a sort of blank slate... Read More »
60 Seconds with Steve Monroe: The Election And Senior Care
So, the 2024 election results are in, and many people were surprised, many shocked, some cried and some cheered, and many who did not vote wished they had. But wherever you are on the political spectrum, if you invest in seniors housing and care, the outlook for you may be better with the election outcome. I say that because Mr. Trump is more pro-business and pro-real estate than Ms. Harris, and the Biden/Harris administration was set to make some changes in staffing and PE investing which our sector was not too happy about. The proposed nursing home staffing mandate will most likely go out the window, and pressure on private equity investing in seniors housing may be put on the backburner... Read More »
60 Seconds with Swett: October Broke the Monthly M&A Record
For those of us who track the seniors housing and care M&A market, October was like drinking from a firehose from the start of the month to the finish. And an active earnings week kicked things into another gear. We have to start with the 73 deals made public throughout October, which is still a preliminary number that we expect to rise, but also a record for any month, ever. That is just the sixth month ever that has surpassed 60 transactions, and only the second to surpass 70. Annualized, it also equates to 876 deals. We don’t expect that to continue, especially with earnings skewing October’s numbers slightly, but we could be entering a new era of transaction activity. The previous... Read More »Schedule a demo
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