Ventas Continues To Improve
We are rounding out the first quarter earnings announcements, and like most everyone else, Ventas posted improved results, especially in its SHOP portfolio. And like everyone else, we are sure management would have liked to see a faster pace with the improvements. We can probably be criticized for focusing so much on census improvement over the now-25 months since the bottom of the market, but census is a good indicator for the health of the industry, as well as the demand for seniors housing units in an environment when supply is at its slowest growth point in years. With new supply constrained because of construction costs and a financing market contraction, combined with the beginning... Read More »
60 Seconds with Steve Monroe: Out of Touch With SNF Reality
Is the Biden Administration so out of touch with reality that they would actually shove a mandate down the throats of providers to require additional staffing in our nation’s nursing homes? Don’t answer that. Although we have heard that they are “talking” with the industry about how and what to do, let’s hope it is more frequently than they have talked with Republicans about the debt ceiling problem. Some sort of pronouncement on the staffing mandate is now expected in June, but it would be better to wait and have a workable way to move forward than to set the industry up for failure. Unfortunately, there are too many people who would like to see the entire industry go out of... Read More »
Is Brookdale Senior Living On The Move?
Brookdale Senior Living has had its share of ups and downs since coming out of the pandemic bottom in March of 2021. Other than sequential occupancy, the first quarter was its best financial performance in a while. Same-community revenue was up year over year by 13.1% and sequentially by 8.4%, labor expense was down 1.2% year over year and down sequentially by 0.6%, and while sequential occupancy was down by 80 basis points in the notoriously bad first quarter for providers, it was up 310 basis points year over year. It could have been a lot worse. More importantly, same-community adjusted operating income was up 50.3% year over year and up 35.4% sequentially. And operating... Read More »
Sabra Health Care REIT’s First Quarter
The big news in Sabra Health Care REIT’s first quarter report was that effective May 1, they are completely out of the 49% joint venture with the Enlivant portfolio that encompasses 154 assisted living communities. The J/V had been in default on the portfolio’s debt, and since there was no recourse to Sabra, it was time to cut the cord. Sabra’s investment had been written down to zero a while ago, so there was no financial impact with the decision. The J/V agreement contained a provision that allowed either partner to walk after a certain period of time. While we understood the original rationale to make this investment to diversify from its skilled nursing portfolio, the price... Read More »
Welltower’s Seniors Housing Portfolio Improves
Welltower’s seniors housing operating portfolio (SHOP) continued on its road to recovery in the first quarter of 2023, a quarter that historically has always had a difficult time. Same-community SHOP net operating income surged an impressive 23.4% year over year, as well as by 6% sequentially. This was helped by COVID going into remission and a mild flu season. Same-community SHOP occupancy (746 communities) increased by 240 basis points year over year, and by 10 basis points sequentially, to 79.4%. The year-over-year increase was less than what we expected, and we have to believe that Welltower management is still concerned about the overall level of occupancy at this point in the... Read More »Schedule a demo
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