Continued Uncertainty At HCP
Lauralee Martin is out as CEO, but who will be in remains a mystery. The only thing surprising about the “sudden” announcement that Lauralee Martin stepped down as CEO of HCP, Inc. was that the effective date of her departure was also the announcement date. Now, we don’t want to read too many tea leaves into the situation, but remember that she came into the CEO position from the Board nearly three years ago in a tumultuous dumping of the previous CEO. She already had a top job at another real estate company and didn’t really need the aggravation. But she steered the REIT through another tumultuous period with, first the two lease adjustments, and then the in-process spin-off of the $6... Read More »
Seniors Housing and Record Low Interest Rates
The 10-year Treasury note rate hit a record low, but is that good news or bad? In case you haven’t noticed, the 10-year Treasury note rate, which is used for pricing many debt instruments, has fallen to a record low. Anything between 1.50% and 2.00% was considered to be Nirvana for seniors housing borrowers. But the 10-year rate has now dropped below that range, and has been flirting with 1.35%. Remember talk about rising interest rates? Yes, at some time it will happen, but that time seems to be getting pushed out into the more distant future with each piece of bad news. So for seniors housing borrowers this may appear to be good news. Except once you get beyond the euphoria of your... Read More »
Bed Sores and Advertising
Law firm advertising may be hitting a new low. I like to watch the news when I eat breakfast, and I must say, Brookdale Senior Living has been bombarding the airwaves with their folksy ads with real employees. Every morning, at least one ad. But the past two mornings, I had the unpleasant experience of seeing a completely different sort of ad, and something I had only seen in Florida over the years. It was for a law firm, and it was asking whether you or a loved one had experienced any number of problems at a skilled nursing facility. An unexplained fall, bruising or weight loss? The worst of it was the phone number they wanted you to call. It was 1-800-bed-sore. Really? Bed sore? I know... Read More »
Buying and Selling CCRCs and IL Communities
Independent living is riding high and CCRCs have successfully emerged from the Great Recession. We know the independent living acquisition market has been hot, setting records in the past two years. And we know that occupancy levels are among the highest in the seniors housing sector, perhaps because there has not been a lot of new IL development, as least compared with assisted living and memory care. But CCRCs, or Life Plan Communities as some people would prefer to call them, have been making a strong comeback from the Great Recession and housing crisis. Who is buying these CCRCs and how are they valuing them? And how is the acquisition of a CCRC different from that of an independent... Read More »
Controversy Among The REITs
Opinions and controversy are all part of the game, but sometimes it can go too far. Some people think I speak my mind a little too frequently, but after 30 years in the seniors housing and care sector, it is hard not to have a lot of opinions. I have always thought that with so much news out there, and so much rehashed news, people want to hear what someone really thinks. It may not be popular, but if it based on experience and a lot of thought, well, then maybe it is worth something. Controversial? Sometimes, at least I hope so. But perhaps not as controversial as the current spat among some healthcare REITs about their decisions to spin off their skilled nursing portfolios, or not. For... Read More »Schedule a demo
Gain access to the best healthcare and long-term care investment intelligence, data, and analysis.
