A new public REIT
We have a new publicly traded healthcare REIT. MedEquities Realty Trust priced its 19.9 million share IPO at $12.00 per share, which was at the low end of the potential range of $12.00 to $14.00 per share. It opened at a slight discount of $11.50 per share yesterday in a day that the overall market tanked. The company invests in skilled nursing facilities, hospitals, LTACs and other healthcare real estate properties. It may be small now, but we are sure it will be out there scouting new acquisitions. The new shareholders are counting on it. FBR, J.P. Morgan, Citigroup, KeyBanc Capital Markets, Raymond James and RBC Capital Markets served as joint book-running managers Read More »
Shutting down SNFs
In an unusual move, a large California owner has asked the state to allow it to close three of his SNFs in one county. My friend Steve Moran had an interesting blog post yesterday about the largest skilled nursing facility owner in California. Apparently, he owns five of the six nursing facilities in a somewhat remote county, and has asked the state for permission to close three of them in Eureka. Now, it could be a ploy to receive higher reimbursement at these Medicaid facilities, as there has been a public outcry to not close them. But with 75% occupancy, and staffing shortages so bad that he has to import temporary staff from out of the area, it would be difficult for anyone to cover... Read More »
Reflections on NIC Conference
Change is coming, and while some people will be prepared for it, others will struggle. With a record turnout at last week’s NIC Conference, we wanted to see what the mood was, and whether there was any primary theme. The mood was decent, perhaps not as upbeat as in years past, but it really depended on whom you asked. The old-timers are a bit nervous, the newcomers more bullish. On the skilled nursing side, going from fee for service payments to bundled payments and ACOs is going to be more painful than many believe it will be, and could result in many small providers hanging it up and selling. It will not cause the value disruption that came after the PPS change to Medicare in the late... Read More »
Leaving with Grace
While attending the NIC conference in Washington, D.C. last week, I learned that Gene and Mari Jo Grace of Grace Management are retiring after nearly 33 years in the seniors housing and care business. I have known them for most of that 33 years, and I feel like the industry is losing not only two very top-notch professionals, but two friends. The respect they command, and the friendship they have shown to so many over the years is unparalleled, not to mention the depth of their industry knowledge and history. They have seen it all. Two years ago, they sold their company to Chicago Pacific Founders (CPF) but continued on in their roles. In those two years, with the help of John Rijos and... Read More »
Welcome to NIC
As we all descend upon D.C., please take some time to stop and chat with us at the conference. So, the 26th annual NIC Conference is upon us. I wonder what the big topic will be this year, if any. In years past there have been exciting developments right before or during the conference, such as Sunrise Senior Living’s share price plunging, or Formation Capital’s billion dollar plus sale of SNFs to GE, or last year the spin-off of skilled nursing assets by Ventas into a new REIT. Will people be talking about Welltower’s billion-dollar acquisition of Vintage Senior Living? Or will it be the upcoming skilled nursing spin-off by HCP? Whatever it is, we will be listening and trying to discern... Read More »Schedule a demo
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