Public-Private Market Disconnect Continues
Record prices again for skilled nursing facilities in 2015, while some of the larger players still struggle. You know I have been talking about the disconnect in the public equity markets for a few months. Some of the largest skilled nursing companies have seen a rough patch recently, and rougher for some than others. One would think that this would also translate into the acquisition market, where buyers might become more conservative as Medicare lengths of stay shorten amid reimbursement pressure, especially with Medicare Advantage plans. But no, the skilled nursing acquisition market is as strong as ever. After setting a record in 2014, the average price per bed soared again in 2015 to... Read More »
Lancaster Pollard’s latest promotion
Jason Dopoulos was recently promoted to Managing Director at Lancaster Pollard, after having been with the firm since 2007. With over $1 billion in transaction volume, ranging from bond transactions to mortgage loans for over 100 expansion, new construction and refinance projects. Currently managing Lancaster Pollard’s Newport Beach, California office, Mr. Dopoulos has worked with both taxable and tax-exempt borrowers to facilitate conventional and federal financing structures. He is also the chair of NIC’s Future Leaders Council. Mr. Dopoulos holds a master’s degree in business from the Fisher School of Business at Ohio State University and a master’s in health administration from Ohio... Read More »Senior Care Valuation Market Weirdness
Asset valuations are out of whack amid continued investor appetite for properties but not companies. I will be honest, sometimes I just don’t get it. I know some of you think I do, but the level of weirdness out there is greater than I have seen in my 30 years covering this sector. In today’s world, you have a group of investors that will pay a publicly traded company $325 million for their owned properties, but the entire company, including the owned properties, has a market value of only $100 million. Healthcare REITs, the most efficient buyers and owners of real estate, are trading at yields that would make a junk bond salesman blush, even though in most cases they have a lot of good... Read More »Troubles Everywhere
This week can go down as one of the worst we have seen in the seniors housing and care market. Putting aside the nearly $10 billion drop in market value of the healthcare REITs and senior care companies, when analysts start asking HCP, Inc. whether they think HCR ManorCare, its $6 billion tenant (well, now closer to $5 billion), may have to file for bankruptcy protection, you know that things are out of whack. The problems at HCR ManorCare, among other things, sent HCP (and some of the other healthcare REITs) into a nosedive. At one point Thursday, HCP’s yield was just over 9.0%, something that is shocking to most people. Now, three of the healthcare REITs yield more than 10%, with a few... Read More »Senior Care and REIT Stocks Collapse
Brookdale Senior Living and HCP, Inc. were the first to report on fourth quarter earnings, and investors did not like what they heard. I really don’t know what to say about the news that came out yesterday, other than it had a disastrous impact on the market. Investors were hoping for something positive out of Brookdale Senior Living’s earnings call, but what they got was that a sale of the company was off the table, they may do a stock buyback, and slow growth is what can be expected now. The reaction? The stock plunged by 25% in two hours. HCP, Inc. announced its fourth quarter results, which included announcing they were writing down their HCR ManorCare investment by $817 million, and... Read More »Schedule a demo
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