Omega Healthcare Reports, American Healthcare Prices IPO
There had been some nasty rumors in the market leading up to the release of Omega Healthcare Investors’ fourth quarter and year-end earnings release. Some people fretted that the situation had deteriorated with too many of their customers, which could force them to cut their dividend rate. You can’t believe everything you read, except on these pages. While there are still some tenant issues, the overall situation is improving. Because they are leases, the information comes with a three-month lag. For the 12 months ended September 30, 2023, occupancy was 79.1%, up from the previous quarter and up 290 basis points from the year-ago quarter. EBITDARM coverage was 1.63x in the third quarter,... Read More »
Sonida Senior Living Readies for Next Phase
Don’t you love it when a plan finally comes together? Sonida Senior Living has been working diligently to streamline its capital structure, not to mention improving its census and margins. Yesterday they announced two major developments which should set the stage for future growth. First, they purchased $77.4 million of outstanding debt held by Protective Life for $40.2 million, or a 52% discount, across seven communities. We are not sure we have seen that large of a discount in the market, and perhaps news of this will light a fire under some other creditors. Part of the purchase price was funded by a $24.8 million expansion of Sonida’s existing term loan with Ally Bank. An additional $44... Read More »
The Ensign Group Rocks It Again
It is all about culture, and handing down responsibility, accountability, and providing financial incentives that makes The Ensign Group tick, and rock every quarter. It is also something some seniors housing providers can learn from. Some companies are doing it, but many founders and CEOs are still not ready to hand over the tools to succeed. The nursing home industry is difficult, but Ensign continues to outperform. Same-facility occupancy was up 240 basis points year over year, and it was up 40 basis points sequentially. The skilled mix increased by 110 basis points sequentially. Other nursing home operators only dream of this. In addition, Ensign’s 2024 earnings guidance is now 13%... Read More »
Highmark Assumes Management of Iowa Portfolio
Highmark Senior Living, a Hubbell Realty Co. affiliate that manages six communities with over 290 residents, has taken over management of a portfolio of Edencrest senior living communities spread throughout Iowa. The communities include Edencrest at Beaverdale (built in 2017), Edencrest at Green Meadows (2016), Edencrest at The Legacy (2018), Edencrest at Riverwoods (2014), Edencrest at Siena Hills (2017), Edencrest at Timberline (2023) and Edencrest at Tuscany (2021). Read More »
Some Providers Still Stuck In Pandemic Swamp
Diversified Healthcare Trust reported on the December performance of its seniors housing operators, and let’s just say it seems that little progress has been made. In the seniors housing operating portfolio (SHOP) operated by Aleris/Five Star, with 117 communities and 16,951 units, in 2023 census increased by only 240 basis points to 80.4% in December. But that is not the major problem. The average monthly rate has held fairly stable, ending the year at $4,429 compared with $4,278 in January last year. The problem has been expenses, which increased by 11% over the year, jumping by 5% from November to December alone. That resulted in a plunge in NOI in December to $4.0 million,... Read More »Schedule a demo
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