Occupancy, Rates And Discounting In Seniors Housing
The recent NIC MAP data on occupancy, development and rate growth can be interpreted in many ways. So, what are we really to make of the NIC MAP data for the first quarter? Most of the data was viewed positively, despite a smallish decline in occupancy from last year’s fourth quarter. Absorption levels have been increasing, according to the data, and construction starts as a percent of existing supply declined from both the fourth quarter and the year-ago quarter. Does this mean that the much-feared over-building threat has dissipated? Hardly, as one quarter’s worth of data does not present a strong trend, and it is possible the small decline in starts was related to the chaos in the... Read More »
Exit the extremes
While the average price per bed for skilled nursing facilities hit a record high in 2015 (at $85,900 per bed), driven largely by a record number of transactions valued above $100,000 per bed, seniors housing (assisted and independent living combined) experienced a drop in its average price per unit. After 2014 set a record with an average of $208,200 paid per unit, the average in 2015 dropped to $189,900 per unit. What drove this decrease? Well, there were fewer high-priced sales, proportionally, in 2015. The upper quartile in 2015 was $227,900 per unit, meaning that 25% of the properties sold at prices above this level. That is well off from 2014’s record-high of $250,800 per unit.... Read More »A Message From The Editor
It’s been a great 30 years writing The SeniorCare Investor… It is with mixed emotions that I am announcing my retirement effective the end of this year when I will qualify for Social Security payments. I have had a good run for the past 30 years writing about the seniors housing and care industry, and while some of you may miss my musings, I am sure others will not. If you can believe it, when I got in this business in 1986, I was also brokering senior care properties. Unfortunately, not as many as I would have liked, so I turned to my pen, which over the years became my keyboard. And boy did I enjoy writing some of the stories. As you know, I liked to call it like I saw it,... Read More »Assisted Living “Lite” Or Not
Whether you think you operate your assisted living community under a hospitality model or a healthcare model, there will only be more health care in the future. Recently, there have been some stories in the senior care media about the hospitality model for assisted living compared with the healthcare model. That was a big debate in the late 1990s when 20 assisted living companies went public as some companies didn’t want to be labeled as “healthcare” companies, with all the regulatory and reimbursement baggage that comes with it. Some preferred to call the hospitality model “assisted living lite.” In fact, the founder of Sunrise Senior Living was famously quoted as saying Sunrise did not... Read More »Changes at the top
There has been a lot of mobility in the seniors housing C-suite lately (Kai Hsiao stepping down as CEO of Holiday Retirement earlier this year, Doug Korey heading over to LTC Properties, the recent Brookdale Senior Living shuffle, etc…), and yet another job change was announced at the end of March. HCP’s Chief Financial Officer, Timothy Schoen, is leaving the company to become President of BioMed Realty, a life science real estate company based in San Diego that was recently purchased by real estate funds managed by Blackstone for approximately $8 billion. Mr. Schoen had been with HCP since 2006 and has served as Executive Vice President since 2009 and CFO since 2011. Mr. Schoen will... Read More »Schedule a demo
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