60 Seconds with Swett: Rates Tumble on Eve of NIC
Two years ago at the NIC Fall Conference, the spike in interest rates, with the 10-Year Treasury rate heading above 3.5%, seemed to spook many investors, as deals started disintegrating left and right. That did not help to lift the mood of everyone there. Then, last year, on the eve of NIC, rates were again spiking, this time above 4.5% and heading to 5.0%. The Fed may have stopped its rate increases, but the costs of borrowing were not on the decline. At least there was a belief that the worst had passed, or at least we were in the middle of the worst. Again, did not lift the spirit of the thousands of NIC attendees, and thank you for the open bars. Now, we are approaching another... Read More »
60 Seconds with Swett: Senior Care M&A: Ready to Explode?
The industry seems to be on the brink of a breakout M&A period, which is an astonishing thing to say when we are already in the midst of a record-breaking period of transaction activity. The promise of an interest rate cut, even a 25-basis point cut, could usher a number of buyers off the sidelines, and if a few lower cap rate deals get announced, then a few more owners of high-quality communities could be tempted off the sidelines too. On our webinar last week covering the mid-year update of our M&A and valuation statistics, our panelists seemed to believe that a number of large deals were looming, which could help break the logjam of mostly small deals closing in the... Read More »
60 Seconds with Steve Monroe: Where Do Valuations Stand in 2024?
It seems that despite the record levels of M&A activity we are witnessing in the seniors housing and care market, there are still scores of buyers and lenders still ready to pounce on the growth opportunity but have not done so yet. They are just waiting for something, either an interest rate cut (or two), more competitive term sheets from capital providers, certain operating metrics in their respective markets, or just some reasonable assurance that the senior care industry and the capital markets will not implode in the near term. When these buyers return to the M&A market, they will need to know where pricing is for different kinds of deals, what lending options they may... Read More »
60 Seconds with Swett: M&A and Financing Markets Breaking Loose
We have to say that there seems to be a good amount of optimism out there, despite an uncertain economy, an unsettling election cycle and constant pressure on operators to increase census and cash flow. Rates have a lot to do with it, as the 10-Year Treasury rate appears to have settled below 4% and expectations of one and more likely two rate cuts are increasingly becoming consensus. That is far from a sure thing, but we have heard that even one rate cut could be enough to bring a lot of buyers, sellers and lenders back into the fold, with the reasonable assurance that rates have started their descent. We also spoke with a couple of lenders who described a much healthier debt and equity... Read More »
60 Seconds with Swett: Watch the Quarterly Investor Call 2.0
Today, Wednesday July 24th at 1pm ET, we are hosting our second Quarterly Investor Call, and it comes at a time of record-high M&A activity and no slowdown in sight. How are dealmakers doing it with all of the hurdles and higher costs associated with closing transactions these days, not to mention low valuations not inspiring many potential sellers to get off the sidelines. It turns out that need is trumping desire to sell for many owners right now, with few believing that the capital markets environment will improve dramatically, and quickly. So, rather than wait a year, they are facing the music, and often a loss on their books, to move on from a property that was either struggling... Read More »Schedule a demo
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