• CFG Provides Simi Valley Refinance

    Capital Funding Group (CFG) announced that it provided a $40 million loan to refinance an assisted living/memory care community in Simi Valley, California, with Meridian Capital Group arranging the transaction. Griffin Living, a large privately held real estate developer, obtained the loan, which repaid an existing construction loan and provided... Read More »
  • Pennant Releases Q2 Earnings

    The Pennant Group, Inc. has announced second quarter earnings for the year, coming out with adjusted diluted earnings of $0.14 per share, which is down from the year-ago quarter’s $0.17 per share but in line with various expectations. It seemed that more focused operations and portfolio pruning offset labor and inflationary headwinds. It also... Read More »
  • Greystone Provides $47 million in HUD Financing

    Greystone has provided a total of $47 million in HUD financing for five skilled nursing facilities in California, Connecticut, North Carolina and Ohio. The debt comprised $8.2 million for a 35-bed skilled nursing facility in San Diego, California, a $10.5 million loan for a 103-bed facility in Dayville, Connecticut, an $8.1 million loan for a... Read More »
  • 60 Seconds with Steve Monroe: Brookdale Has Great Start To Third Quarter

    Brookdale Has Great Start To Third Quarter Nearly two years ago, we wrote that the first half of every year was a census downer for the industry, but that the third quarter was always a winner. We are making history, or better said, you are making history. The first half of this year has been a winner, which it should have been because of the... Read More »
  • Avanath Acquires Northern California Portfolio

    Avanath Capital Management has acquired a six-property multifamily and affordable seniors housing portfolio in the Sacramento, California market. The communities sold for $182 million, or $176,400 per unit, and expand the real estate investment firm’s presence in the Northern California market.  The entire portfolio consists of four multifamily... Read More »
60 Seconds with Steve Monroe: Do We Really Have To Worry About A Recession?

60 Seconds with Steve Monroe: Do We Really Have To Worry About A Recession?

We just can’t seem to get a break. Just as we are coming out of the pandemic morass with some decent census increases since March of 2021, now we have to worry about a looming recession and stagflation.  Many people in the sector have only seen a growing economy in the past decade and inflation rates hovering between zero and 2%. Stagnation? Never heard of it, well, not for a few decades at least.  As a result, we thought we would take a look at what happened to the senior care sector in the last major recession in 2008-2009, as well as the mini-recession in 2020, and see what exactly happened in our sector and what might happen this time around.  What we concluded is that... Read More »
When Small Is Better

When Small Is Better

It is difficult to be nimble when you are large, and with so many headwinds, let’s take a look at Bloom Senior Living, a small operator in the Midwest and Southeast, and how it is faring. At the height of the pandemic, as in March 2021, when everyone was suffering from their lowest occupancy levels, Bloom was no exception when it dipped to 66.7%. The difference is in what happened in the next 15 months. By August 2021, census had increased by 830 basis points at its five communities and jumped another 500 basis points by the end of the year. As of May 1, 2022, census stood at 85%, a more than 1800-basis point increase since the bottom of the market. We have not seen that kind of... Read More »
Sonida Reports Healthy Occupancy Bump in Q1 

Sonida Reports Healthy Occupancy Bump in Q1 

Sonida Senior Living (formerly Capital Senior Living) came out with its first quarter earnings, just a month after it provided its delayed fourth quarter results. At that time, Sonida had reported some progress after it raised $154.8 million through a major recapitalization in late 2021, including reporting sequential occupancy growth from 82.0% in January to 82.2% in February and 82.6% in March. That equated to a 60-basis point increase for a quarter that always declines.  Now, looking at the weighted average occupancy for its same-store portfolio, the first quarter of 2022 came in at 82.3%, which represents a 100-basis point increase from the previous quarter and is 680 basis points... Read More »
Welltower Posts Good Quarter

Welltower Posts Good Quarter

Everyone tries to put a good face on their performance, whether it has been average or well above average. But Shankh Mitra, CEO of Welltower, was practically exuberant on the REIT’s recent performance and its future growth and prospects. It certainly helped that same-community NOI in its SHOP portfolio grew by 18.4% year over year. Half of that growth came in the second quarter 2021, but the other half (9.7%) came in the first quarter this year. Increasing census and the ability to now charge higher rates really drove the increases.   Welltower’s seniors housing operated portfolio (SHOP) census beat the first quarter blues as many others have, with the U.S. portfolio posting a... Read More »
When Small Is Better

Ventas SHOP Poised for Growth

Ventas is one of the largest owners of seniors housing communities, so it is a REIT always worthwhile to watch. It owns 544 communities with 61,794 units in its SHOP portfolio, plus another 267 communities with 20,149 units that it owns and leases to operators.   We usually focus on the larger SHOP portfolio, mostly because there is much more detailed information on it. And this portfolio includes both the 463 U.S. communities and the 81 in Canada. This is important because the Canadian portfolio has a much higher average occupancy rate, 93.2% compared with 77.6% in the U.S., even though the U.S. is seeing more significant improvements. But how do you really improve on 93.2%? The... Read More »
Brookdale Improves, But More Is Needed

Brookdale Improves, But More Is Needed

As you know, we never expect much in the first quarter for seniors housing operators, because historically it is always the toughest quarter from a census perspective. And Brookdale Senior Living is like an aircraft carrier: it is so big that it can take forever to change direction, and mishaps can take even longer to correct across their industry-leading 678 communities. Their first quarter results showed some progress, but also showed that they have a long road ahead to increase census and control labor costs. Digging out from weighted average occupancy of 69.4% in the first two months of 2021 is no easy task. And Brookdale should have a target of at least 85% across the portfolio, at a... Read More »