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 »
The Volatile Insurance Market
As the M&A market declined in activity from the heights of early-2022, we kept hearing that every deal was much harder to close and experienced more delays than in recent memory. The capital markets had a major impact on that, understandably, but another wrench thrown in many buyers’ M&A plans was the volatile (and pricey) insurance market for both the property’s real estate and operating business. There are plenty of reasons to explain the increase in insurance costs in the last year. First, rates had been dropping for about 15 years until around 2018/19 due to providers wanting to build scale, even if it meant taking losses to get there. Then, as Chip Stuart of HUB... Read More »
Omega Healthcare Investors’ Shares Surge
The good news seems to keep on coming. Omega Healthcare Investors released its first quarter 2023 results, and while the past was still problematic, the future is looking brighter. The REIT is the largest owner of skilled nursing facilities in the country, and its customers were particularly hard hit in the pandemic. It appears, however, that most of the restructurings and asset sales are behind them, even though there are a few significant ones ongoing. The positive attitude and look to the future sent the share price surging by nearly 10%. The recently announced rent and interest deferrals, and changes, include LaVie, Maplewood Senior Living, Agemo (which has resumed its $6.4 million... Read More »
LTC Properties Reports First Quarter Results
We are still in the beginning stage of the first quarter earnings season with just a few companies in our sector reporting so far. LTC Properties reported first quarter results on April 27, with earnings slightly below expectations, but revenues above. LTC is one of the smallest REITs in our sector, but the only one that pays its dividends monthly, which we always considered a plus for investors. Like all of the REITs, some of their operators have had challenges during the pandemic keeping up with lease or mortgage payments, but there appears to be a flicker of light at the end of the tunnel. The good news for LTC is that they really have no significant debt maturities looming for the next... Read More »
The Ensign Group Slightly Beats Forecasts
The Ensign Group posted another solid quarter, beating its forecasts by a bit, but not by enough to get investors excited. The shares traded down by about 3.6% on a day that the overall market was up by about 2%. The 52-week range is $70.29 to $102.26 per share, and with the current value just under the high, investors may be thinking that there is not much room to go up in the near term. Year over year, quarterly revenues were up 24.3%, adjusted earnings per share were up 14.1% and occupancy keeps on rising as well. They purchased the operations of 19 nursing facilities during the quarter. Unlike most companies, Ensign continues to grow, and grow profitably. But it is not just the... Read More »Schedule a demo
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