Welcome to NIC
As we all descend upon D.C., please take some time to stop and chat with us at the conference. So, the 26th annual NIC Conference is upon us. I wonder what the big topic will be this year, if any. In years past there have been exciting developments right before or during the conference, such as Sunrise Senior Living’s share price plunging, or Formation Capital’s billion dollar plus sale of SNFs to GE, or last year the spin-off of skilled nursing assets by Ventas into a new REIT. Will people be talking about Welltower’s billion-dollar acquisition of Vintage Senior Living? Or will it be the upcoming skilled nursing spin-off by HCP? Whatever it is, we will be listening and trying to discern... Read More »
Home Healthcare Is Not The Answer
Costs are rising everywhere, putting increased pressure on seniors’ choices. So, what’s happening in the home healthcare world? On the one hand, you have CMS cutting Medicare payments, with MedPAC suggesting the cuts should be even higher. In addition, wages rates are rising, and home care workers in Washington state have won a $16 per hour wage in the future. On the other hand, new home healthcare startups are raising a lot of money, including $42 million earlier this month by California-based Honor, which is expanding into Texas. And then we read about a small home health provider in California who decided to get into the seniors housing business because home health has become too... Read More »
No Summer Vacation From Deal Flow
August used to be the month for vacations, but for some, not this year. August is supposed to be a sleepy month. But as soon as I left on a summer vacation, the biggest deal of the year was announced, and we had a series of uneven earnings reports from the few remaining public companies. The large acquisition by Welltower was a bit of a surprise because we thought that deal had died late last year. And it did, a few times. And with a sub-6% in-place cap rate with occupancy for the portfolio so low, Welltower is obviously counting on a change in management to spruce up the cash flow. Great locations yes, but we thought the Big Three were taking a break from the high-priced portfolios. I... Read More »
Development Alive and Well in New Zealand
A 300-unit CCRC is planned for Queenstown, more known for its youth, extreme sports and tourists. Read More »
Five Star and Senior Star… Again
Oh boy, here we go again. Bill and Bob Thomas have sent another letter to shareholders of Five Star Quality Care, of which they own about 3.4 million shares, or 6.8% of the company. As shareholders, they are glad that management realized that they had some valuable assets, the full value of which is not reflected in the share value. It rarely is. But, as we pointed out a few months ago when Five Star sold a few assets for a big price, and a big gain, with seven properties worth more than the market cap of the entire company, they are also subjecting themselves to a big lease payment liability, which will cut into cash flow. As shareholders, this is not making the Thomas brothers happy.... Read More »Schedule a demo
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