The Santa Stock Rally Is Stalling
We were supposed to see stocks rise this month, but so far the market is down as are seniors housing stocks. So what happened to the Santa rally? While we still have a few weeks to go before the end of the year, the markets have been sinking, and almost all seniors housing and care stocks have dropped, with Brookdale Senior Living falling the most, with a loss in value of 12% since November 30. It has now dropped below the psychologically important $20 threshold, and any bad news could add insult to injury. The others are closer to a mid-single-digit decline this month, but with one glaring exception. That is The Ensign Group, which is up just over 2% this month as it keeps chugging along... Read More »People on the move, November 2015
Clearly in the holiday spirit, several companies have recently announced new hires or promotions. First, REDICO, a real estate development and investment company, promoted Samantha Eckhout to VP of Development and Tim McCafferty to VP of Construction. Both have backgrounds as project managers for REDICO, which is working on building its development pipeline. Next up, HFF hired Peter Rotchford as director of its New York office. Coming from Avison Young, Mr. Rotchford will be focused on fixed- and floating-rate debt and equity placement transactions. Finally, Lancaster Pollard promoted both Robert Baxter and Ryan Miles to senior vice president. Mr. Baxter has been with the firm since 2005,... Read More »Record Senior Care M&A Year
With one month to go, and a busy one at that, we have surpassed 300 announced mergers and acquisitions, setting a new record. We have just passed last year’s total number of publicly announced seniors housing and care acquisitions, breaking through the 300-deal mark as of November 30, with one month left to go. I am beginning to wonder whether the binding of our annual Senior Care Acquisition Report will be strong enough to contain what is sure to be more than 300 pages of charts and deals covering 2015. So, are we at a market peak or not? Certainly not in terms of investor interest in buying properties across the seniors housing and care spectrum. But pricing most definitely has hit its... Read More »Fraud And Senior Care
Despite some high-profile allegations against senior executives for some type of financial wrong-doing, we are still thankful for all the good work done by the nation’s caregivers. What is it about caring for the elderly and financial fraud or other misdeeds? About once a week I read about a home health agency being charged with Medicare fraud. And then there is Medicaid fraud we hear about all too often with nursing facility owners, doctors and other providers. In our senior care industry, the founder of Sunwest Management, Jon Harder, was sentenced last week to 15 years in federal prison. Also last week, the SEC charged Chris Brogdon, the CEO of Global Healthcare REIT, with... Read More »Senior Care Market Peak and Bottom
The private market valuation may have peaked, but the public market may have seen its low. As you know, I have been vocal about the acquisition market being at a peak for most of this year, at least when it comes to pricing. It just seems hard to imagine cap rates declining further with a rate hike looking like a reality….at least, according to consensus thinking. But the public markets are a different story. It has been a real roller coaster, but mostly down. But, and this is a big but, the downward spiral was so bad we just may have hit bottom. And November 13 is looking like the bottom, at least for now. On the provider side, both Kindred Healthcare and Genesis Health hit new lows on... Read More »Schedule a demo
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