SNF M&A; A Market Remains Robust
With at least five transactions priced over $100,000 per bed so far this month, July may be a record for high-priced SNF sales. The skilled nursing facility M&A market continues to lead the way in terms of where the post-acute sector may be heading. So far in the past three weeks, we have seen five deals close with values ranging from just over $100,000 per bed to over $200,000 per bed. Yes, a few have been in the northeast, which can be expected, but these high-priced sales go all the way from North Carolina to Texas to California. This is not a regional phenomenon. It is a change that is going on in the sector that will be part of the evolution of who takes care of the elderly, how... Read More »Assisted Living Occupancy Declines…Again
Second quarter occupancy trends are soft again, with construction starts strong. So, are people finally beginning to believe that the development boom we have been talking about is actually starting to impact census? We are talking about assisted living and memory care, because that is where the action has been. According to the second quarter NIC MAP data, assisted living occupancy has dropped again sequentially, and is down 45 basis points from a year ago. But worse, and more to the point, trailing 12-months assisted living construction starts as a percent of existing supply has been at 4.7% and 4.8% for the past two quarters, much higher than a year ago. And, more development pipelines... Read More »More Troubles For HCP
Financial problems at the UK’s largest care provider results in a write-down by HCP. HCP just can’t get a break. While the problems with its major tenant HCR ManorCare have been in the spotlight for a while, in late June the REIT announced that it will be taking another write-down. This time it relates to a $215 million investment made three years ago in senior notes issued by Four Seasons Health Care, the largest elderly care provider in the UK with about 470 care homes. Well, it looks like Four Seasons is having financial difficulties from increased labor and corporate costs, lower occupancy from above-average winter death rates and an increase in care home embargoes. The non-cash... Read More »Seniors Housing Weekly Update – Another Holiday Sale For Fortress
June 23, 2015. 60 Seconds with Steve Monroe. New Senior Investment Group pays $640 million for 28 Holiday Retirement Communities… It has been eight years since Fortress Investment Group closed on its acquisition of Holiday Retirement Corporation for $6.6 billion, or $188,500 per unit. It saw occupancy drop from around 90% to well below 80% in less than three years. There was high turnover among the staff. There were some debt extensions to give it more time. Did we mention the Great Recession hit a year after closing the deal? A lot can happen in eight years, including continued low interest rates which help keep valuations up. This week, they announced another portfolio sale, this... Read More »Seniors Housing Weekly Update – CCRCs And Employment Growth
June 16, 2015. 60 Seconds with Steve Monroe. Everyone reported that CCRCs are going to have explosive job growth in the next five years, but are they missing the boat? CCRCs And Employment Growth As you have probably figured out by now, I like numbers and statistics, but too often, people report on numbers that are released by others without stepping back and asking if they make sense. One such number received some press recently. CareerBuilder came out with various industries that were expected to have the highest rate of job growth in the next five years. Surprisingly, CCRCs came in eighth place, with an estimated growth of nearly 94,000 jobs between now and 2019, for an increase of 21%.... Read More »Schedule a demo
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