60 Seconds with Monroe: Are We Getting Too Big Again?
One of the consequences of the pandemic, one of many, is that the differentiation between the best operators and the not so good has been increasingly exposed. And of course, investors will seek out the best to manage their properties. But as this happens, the operators who are doing a good or even great job today will start to be spread too thin. Managing 20 communities is a lot different than 50, 100 or more. You can have the procedures and policies in place for 100 properties, but you do start to lose that personal touch, especially if the CEO is very hands on. With REITs and other investors doubling down on either their best operators, or finding others that they perceive to be top... Read More »
Are Cap Rates Set To Rise in 2024?
In a recent survey conducted by Cushman & Wakefield, 68% of respondents anticipate a sustained increase in capitalization rates over the next year, expressing concern over debt market liquidity, which is the primary worry for 51% of participants. The majority of respondents, 49%, are pursuing core-plus investment strategies, while 34% focus on opportunistic or distressed investments, expecting around $18 billion in sector-specific loan maturities within the next 24 months. Notably, 33% of participants are targeting need-driven segments, particularly assisted living. There’s a notable compression in basis point spreads between the going-in capitalization rate and terminal capitalization... Read More »
Sonida Senior Living Still Making Progress
As Col. Hannibal Smith of the A-Team was fond of saying, “I love it when a plan comes together.” For Sonida Senior Living, it has been a long struggle, and while it may be taking longer than management wanted, the plan is slowly coming together. Everything is moving in the right direction, with occupancy up 150 basis points year over year to 84.9% in the third quarter, higher than industry averages, resident revenue increased 12.6% year over year, adjusted EBITDA more than doubled in the third quarter compared with the year-ago quarter, and RevPOR increased by 11.7% year over year. October’s census increased by 40 basis points from September to over 86%. The third quarter also saw... Read More »
Chartwell Retirement Residences Sees Census Soar
Canada-based Chartwell Retirement Residences has been seeing a resurgence of occupancy growth that seems to be above and beyond the normal third quarter increases that we have come to expect. The third quarter saw census increase by 210 basis points from the June average of 80.1%, but it grew by another 100 basis points in October to 83.2%. They expect to add another 100 basis points over the next two months. Not too shabby. If they keep it up, they may reach the 95% occupancy levels of Ventas’s Canadian operators. Leasing activity in 2023 to date is 18% higher than the company’s pre-pandemic levels. Occupancy is now 600 basis points above its recent low of 77.2% in April 2022. With... Read More »
Is This The Time To Start A REIT?
As we know, healthcare REITs suffered during the pandemic, with share prices hitting lows in March 2020. It was a long battle to regain previous values and even longer to sort out the various tenant problems. Balance sheets have been cleaned up, tenants and properties have been replaced, but there are still many legacy problems. Is now a good time to start a REIT with a clean slate? Well, 1031 Crowdfunding thinks so. It has just launched Covenant Senior Housing REIT, which out of the gate has three assisted living/memory care properties with a value of $51.25 million. The communities are located in Oregon and California with an average 89.0% occupancy. They plan to buy cash-flowing... Read More »Schedule a demo
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