Cap Senior Shareholder Battle Continues
At this point, all we can say is that there have been a lot of pissed off shareholders of Capital Senior Living, and not just this year. It goes back several years when the stock price was just over $27 ($416 in today’s post-split equivalent price) and the market was riding high in general. Shareholders thought management and the board should take advantage of the environment and sell. The rest, of course, is history. Companies were being sold at premium values, such as the sale of Emeritus to Brookdale Senior Living (which never should have happened). And later on, the 49% interest in Enlivant sold to Sabra Health Care REIT nearly $200,000 per unit. Cap Senior’s assets were much better.... Read More »
High-End Medicaid Assisted Living
More than 25 years ago, when private-pay assisted living burst on the scene, there was a large percentage of nursing home residents that had no other choice in their local communities, but had the financial resources to pay out-of-pocket. Many of them turned to assisted living. For those on Medicaid, the choices were slim. We have long advocated that states could save money with their Medicaid-funded residents if Medicaid covered more assisted living for those who truly can’t afford any private pay living arrangement, especially those needing any kind of nursing care. The fear, of course, was that the Medicaid pie would expand as opposed to merely shifting where the money... Read More »
Capital Senior Living Corrects Earnings Statement
Early today, Capital Senior Living announced revisions to its second quarter earnings report, most likely as a result of our reporting last Friday of the very misleading error, as well as management’s denial of any reporting issue during the earnings call. No one else caught the mistake, and it was not an insignificant one. In today’s release, they called it an “inconsistency” in the preparation of the supplemental information with regard to operating expenses and operating margin. As a result, the operating margin for the second quarter was 21.5% and not 28.7% as was originally reported. The originally reported 860-basis point sequential increase in operating margin should... Read More »
Capital Senior Living, Mixed Messages
Capital Senior Living released its second quarter earnings yesterday, and there was some good news with the bad. On the good news front, occupancy has increased from the February low of 75.3% to 81.8% at the end of July, for a whopping 650 basis point increase. That is among the best we have heard in the industry. Some of the increase came from discounting early on in the recovery, and management said these incentives have begun to decline. The bad news on the occupancy front is that the rate of increase has significantly slowed. April saw a 143-basis point increase, followed by 134 bps in May, and then slowed to 85 in June and a paltry 25 in July. Now, as we have statistically... Read More »
Ventas Sees Census Growth
When looking at the second quarter results for Ventas, it almost appears that there are a few different story lines. Take the 321 U.S. same-community SHOP portfolio. Occupancy decreased 530 basis points in the second quarter to 72.1% from the second quarter of 2020. Not great but in line with the rest of the industry. But then its Sunrise Senior Living portfolio’s spot occupancy has increased by 627 basis points from the low point in mid-March to the end of July. Although it was not a straight-line increase, an average of 156 basis points a month is great. Heck, increasing at that level every quarter would be good. Its Atria Senior Living portfolio... Read More »Schedule a demo
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