NHI’s Tenants Continue To Improve
As we are coming to the end of the third quarter earnings season, we apologize for sounding a bit like a broken record, but the fact of the matter is that the industry continues to claw its way out of the COVID pandemic pit. While it is taking longer than anyone wants, and longer than most people had expected, census and cash flow are increasing. The lack of new developments certainly has not hurt. Take National Health Investors as an example. Would CEO Eric Mendelsohn like to see more progress with his tenants? Sure, but the third quarter saw some of their providers post great increases in occupancy. Bickford’s same community results for 38 communities saw a 240-basis point increase in... Read More »
Omega Healthcare Still Investing
Omega Healthcare Investors, which is approximately 75% skilled nursing and 25% seniors housing, and the largest institutional owner of SNFs, reported a mixed third quarter. While, the financial performance exceeded management’s expectations with unanticipated rent collections from some operators that had been on a cash basis, as well as higher interest income than expected, there were also some problems that will have to be dealt with. First the problems. During the third quarter Omega sold seven SNFs that were leased to LaVie Care Centers for $84.4 million. In the third quarter, LaVie paid $7.4 million in rent, plus $2.5 million in October. But on November 1, Omega sold an additional 29... Read More »
Brookdale: The Magic of Increasing Rates and Census
So far, so good, with everyone’s third quarter earnings results. And that is the way it should be, since the third quarter has almost always been the best quarter, at least as far as occupancy is concerned. For Brookdale Senior Living, it was no different, with seven months in a row of increased occupancy. The question is, will that be enough? We have to admit (once again) that there are few voices as soothing as Brookdale’s CEO Cindy Baier when delivering quarterly updates, whether good, bad or ugly. But for the third quarter it was mostly good news. Call it steady as it goes, as most financial and operating metrics are still on the rise, except for sequential moveouts, which declined by... Read More »
Shazam All Over Again For Welltower
Coming off its solid third quarter earnings, Welltower sold 17.5 million common shares yielding gross proceeds of $1.5 billion. The selling price was at a small discount to the market price. If the underwriters exercise their option, another 2.725 million shares could get sold. The underwriters were BofA Securities and Goldman Sachs. Proceeds will be used to fund previously announced acquisitions as well as for general corporate purposes. We have not seen an equity offering of this size for a healthcare REIT in many years. Shazam. Read More »
Ventas Posts Solid Q3 Results
Welltower came out of the blocks first with its third quarter results, and it was quite impressive. The second largest healthcare REIT, Ventas, reported at the end of last week, and while the results were not quite as good as Welltower’s, it was close, and Ventas should be happy with the continued improvement. For Ventas, same-community occupancy in its SHOP portfolio increased sequentially by 30 basis points and year-over-year by 110 basis points to 83.6%, helped by its Canadian portfolio at 95%. Even though Welltower posted larger same-community sequential and year-over-year increases of 120 basis points and 220 basis points, respectively, its overall occupancy is lower at 81.7%. ... Read More »Schedule a demo
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