The Senior Care Investors Have Spoken
Last week, we hosted a 90-minute webinar called “Seniors Housing M&A: The Numbers, the Deals and the 2017 Forecast” with panelists Arnold Whitman of Formation Capital, Bill Mulligan of Ziegler and Alan Plush of HealthTrust, and Steve Monroe moderating. The panel discussed our 2016 M&A statistics for the skilled nursing, assisted living and independent living M&A markets (to be published in the 22nd Edition of The Senior Care Acquisition Report this March), which saw new record-high prices for SNFs and ALFs. But those high prices contradict a growing sense of caution among investors, and lead us to wonder if we have passed the peak. Our listeners to the webinar certainly thought... Read More »Genesis Healthcare Disappoints in Fourth Quarter Earnings
The fourth quarter of 2016 was a tough one for Genesis Healthcare, but it appears 2017 will not be any better, according to both management and those in the industry. Metrics were down nearly across the board. Average occupancy fell 40 basis points from the third quarter to 85.1% (that is also 90 basis points down from Q4:15), and the weighted average revenue per day dropped $2 per patient day. The latter was largely caused, according to management, by reduced funding in the state of Texas, particularly in its Upper Payment Limit program. Those factors, among others, resulted in an adjusted fourth quarter EBITDAR of $156.6 million, which was down 2.7% year-over-year and well off consensus... Read More »
Blackstone, now Ventas, Vying for Brookdale Senior Living
With rumors that Blackstone was out of the bidding for Brookdale Senior Living, it was then leaked that Ventas was in discussions. The saga never ends. We are certainly in weird times. Last week, it appeared that Blackstone was out of the bidding for Brookdale Senior Living, or at least a part of it. Then, it was leaked late Thursday that Ventas was in discussions to buy all or part of Brookdale. What happened the next day? Brookdale’s stock dropped 6.5% on volume of more than 19 million shares, or almost five times the average. So, did investors think Ventas would not pay as much as Blackstone would, and were disappointed? Perhaps, but then after the long weekend, Brookdale jumped back up... Read More »
Skilled Nursing Cap Rates Stable after Record Rise in Price
We are less than a week away from our webinar “Seniors Housing M&A: the Numbers, the Deals and the 2017 Forecast,” where we discuss the results of our soon-to-be-released Senior Care Acquisition Report. Prices have risen to new heights in skilled nursing, nearly surpassing $100,000 per bed at $99,200 per bed. But what happened to skilled nursing cap rates, which most buyers prize far more as a valuation tool than price per bed? In the last couple of years, it has remained remarkably stable at 12.2% (identical to its 2015 level), with just a 20 basis point variance over the past three years. Although not reaching the record-low from the last bull market (12.1% in 2007), skilled nursing... Read More »
Brookdale Senior Living Finally Reports
Brookdale Senior Living finally reported fourth quarter earnings, and they were no better and no worse than could have been expected. While I can’t say it was worth the wait, Brookdale Senior Living finally reported fourth quarter earnings, and it was no better and no worse than what could have been expected given industry trends. That was probably good news. Executive Chairman Dan Decker started the earnings call by stating that they would not be discussing strategic options on the call, which was smart, other than to say that of course they want to maximize shareholder value, but it remains to be seen how that is done, and when. Occupancy at Brookdale declined sequentially and year over... Read More »Schedule a demo
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