Reading the Holiday tea leaves
As most of you have read recently, Walker & Dunlop closed its largest loan ever (almost double the size of its $670 million financing that the company closed earlier in 2015) in the form of a $1.27 billion seven-year adjustable-rate Freddie Mac loan secured by 78 Holiday Retirement independent living properties. The financing, led by Russell Dey and Laura Beaton of W&D, comes out to approximately $144,400 per unit, which if you assume a 75% loan-to-value, is almost identical ($192,500 per unit) to the average price per unit Holiday properties have sold for in the last few years ($193,800 per unit, according to our records). Since 2013 Holiday has sold, in nine transactions, 231... Read More »Holiday people on the move
The HR department at Holiday Retirement must be pretty busy of late, with several key leadership changes to start the year. First, there was the announced departure of Kai Hsiao as CEO for personal health reasons, although Mr. Hsiao will stay involved as vice chairman of the company. Then, Holiday hired Lilly Donohue, who had spent the last four and a half years establishing a senior living business in Shanghai, China, as the new CEO. And finally, Shamim Wu, former Director of Sales at Holiday, left to become President and Chief Operating Officer of Silverado Senior Living, where she will bring together the company’s marketing, sales and operations under her management. Good luck to all in... Read More »2015 Closes With a Surge in M and A transactions
With 38 deals and counting in December, the fourth quarter set a record with 104 announced seniors housing and care acquisitions. Not even the recent deep freeze that has hit the northeast could slow down the deal making at the end of the year and into 2016. And what a year it was. On the last two days of December alone, we recorded 11 closed transactions with a total value in excess of $300 million, and more keep showing up in our in boxes. That put December’s totals at 38 acquisitions in the seniors housing and care space, and a record-busting 104 transactions in the fourth quarter alone. Perhaps that is why so many people are predicting a slower 2016. But not so fast. New deals have... Read More »Five Star Says No Deal
As expected, Five Star Quality Care has rejected the offer by an affiliate of Senior Star to purchase the 33 owned senior living communities for $325 million. Basically, the board said the assets are not for sale, and that the company could improve the value of the shares by improving earnings. Unfortunately, just improving earnings does not result in a higher stock value in this market. Just ask management at Capital Senior Living. So if someone will offer more for the owned real estate than what the entire company is worth, based on its current stock price, what would someone pay for the owned real estate and the operating company? That may be a question that Bill and Bob Thomas may try... Read More »Seniors Housing Companies on the Defensive
Oh, what an end of the year. With just three publicly traded seniors housing companies, all three are under some sort of pressure to do something to increase shareholder value. First it was Brookdale Senior Living, then Capital Senior Living and now Five Star Quality Care. The owners of Senior Star have made an unsolicited offer to buy Five Star’s 33 owned communities with more than 3,100 units, with assisted living and memory care representing just over 75% of the total units and independent living the remainder. At a price of $325 million, or just over $100,000 per unit, the value to shareholders comes to more than $5.00 per share net of some mortgage debt. Five Star currently trades... Read More »Schedule a demo
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