New Senior Care M&A Data
Assisted living per-unit prices rise for the latest four quarters, while skilled nursing remains the same. It was a relatively slow first quarter with regard to publicly announced seniors housing and care acquisitions, other than some old large deals announced last year that finally closed in the quarter. On a rolling four quarters basis, the average price for assisted living jumped to $210,300 per unit for the period ended March 31, compared with $193,650 per unit for calendar year 2016. The average cap rate remained at 8.5% but with an obvious wide range. Meanwhile, independent living did the reverse, dropping to $208,900 per unit for the four quarters ended March 31 compared with... Read More »Sizing Up the Seniors Housing Market
In 2016, buyers paid up for larger seniors housing communities (including independent living and assisted living) compared to 2015. We observed in the 22nd Edition of The Senior Care Acquisition Report that once again, the largest properties, with 150 units or more, still beat out smaller properties in price, averaging $226,200 per unit, 16% higher than 2015’s $195,600 per unit. Here is where the high-priced independent living communities that sold in 2016 exerted their influence in the overall market, representing a clear majority of the largest properties and pushing up the price. Communities with between 100 and 149 units came with a lower price than 50- to 99-unit communities,... Read More »An Optimal Size for Skilled Nursing?
As the skilled nursing market evolves, lengths of stay and occupancy decline, and new entrants like Mainstreet change the way we view skilled nursing/post-acute care facilities, what is the ideal size of facility now? Based on 2016 sales according to the 22nd Edition of The Senior Care Acquisition Report, the average size of skilled nursing facilities sold dropped for the first time in three years to 122 beds, and was closer to the historical norm of 120 beds. That fell from 130 beds in 2015, and is the lowest since 2013, when facilities averaged 121 beds. The smallest facility sold in 2016 was 40 beds, compared with 30 beds in 2015, while the largest facility sold in 2016 was 744 beds,... Read More »
Kindred Healthcare For Sale, Or Not
Kindred Healthcare disclosed that at least one buyer was in early talks to buy the entire company. Don’t you just love rumors? Last week, Kindred Healthcare disclosed that they were well on their way to divesting their remaining skilled nursing facilities, as planned, mostly in groups of facilities to different buyers. But we have also heard there was someone interested in the entire portfolio. Kindred also revealed that someone was in early discussions to buy the entire company. The shares jumped 15%. Now, readers may remember that we have been saying for some time now that the stock was undervalued, and that the components were worth well above the current market cap. Others do not... Read More »Things Not Adding Up At AdCare
It has certainly been a tough few years for AdCare Health Systems. Its former Vice Chairman, Chris Brogdon, has been accused of several securities laws violations. Then the company decided it wanted to get out of the operating business, which it was not doing too well at, and focus on being a landlord, much like a REIT. In a new scandal, an institutional investor, together with a third party, commissioned a little bit of research that turned up some fluff on the resume of the just-ousted CEO, Bill McBride. Apparently, McBride indicated that not only did he graduate from UCLA, but that he also had an MBA from the school. Apparently not. So, the board fired him. AdCare’s stock had not been... Read More »Schedule a demo
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