• Brookdale Senior Living Bottoms Out

    It has been a tough go for Brookdale Senior Living for several years, really, ever since its acquisition of Emeritus in 2014. But the pandemic was almost the final nail in its coffin. Now those nails are beginning to be removed, and perhaps the resurrection is in sight.  While there is work still to be done, the big O, as... Read More »
  • Omega Health Investors Makes M&A Moves In Q1

    On May 6, Omega Healthcare Investors released their first quarter earnings report, and it was a period of major acquisition activity and balance sheet improvements that position the REIT well for the recovery that is surely coming soon in senior care. In the first quarter, Omega closed nearly $600 million of acquisitions and $16.8 million in... Read More »
  • SLIB Sells Wisconsin Assisted Living Portfolio

    As if their end-of-April activity wasn’t enough, the Senior Living Investment Brokerage team of Bradley Clousing and Ryan Saul kicked off May with a portfolio sale of three assisted living communities in Wisconsin. Located in the towns of Waukesha and Oshkosh, they total 255 units and were built between 2005 and 2009. The Waukesha community... Read More »
  • Meridian Capital Group Goes All Out in April

    April showers certainly brought a dizzying number of financings closed by the team at Meridian Capital Group, arranged for a combination of 26 assisted living and skilled nursing facilities in seven states. Ari Adlerstein, Ari Dobkin, Josh Simpson, Matt Lesnik, Jesse Rauch, David Gottlieb and Jacob Scott negotiated the transactions, which totaled... Read More »
  • CareTrust REIT Acquires Again in California

    A little over a month after CareTrust REIT first acquired four CCRCs in California, then a 150-bed skilled nursing facility in Santa Barbara, the company has made another Golden State purchase. The latest deal features a 123-bed skilled nursing facility located adjacent to the El Centro Regional Medical Center in El  Centro (Imperial County). The... Read More »
Senior Care Leading Indicators

Senior Care Leading Indicators

There has not been a lot of good news, but given some leading indicators, the next development boom may be a bit further out than we had expected four months ago. Our focus for the past 12 months has been on the coronavirus pandemic and what it has done to seniors housing and care occupancy rates. We are also on record as stating that getting back to pre-pandemic census levels may take up to four years, partly because we expect development to ramp up again when developers eye the post-2025 demographics. But something else has been happening that may keep some builders away. First, the 10-year treasury rate has more than doubled in the past seven months. Yes, 1.36% is still attractive, but... Read More »
LTC Properties Transitioning Senior Lifestyle Corp.

LTC Properties Transitioning Senior Lifestyle Corp.

LTC Properties reported fourth quarter and full year earnings late last week, and while there is some uncertainty, management appears to have a good handle on how they are dealing with it. This is especially true with the 23 communities leased to Senior Lifestyle Corporation (SLC), which we will get to below.   One interesting statistic that came out is that with 71% of their private pay tenants reporting, actual occupancy dropped from 79% on September 30 to 72% on December 31, one of the largest quarterly declines we have seen. The good news is that one month later occupancy stood at 71% on January 31, so the rate of decline has slowed significantly.  LTC’s... Read More »
Buyers Paid Premium For Strong Operations in 2020

Buyers Paid Premium For Strong Operations in 2020

In 2020, there was yet again a perfect correlation between the average price per unit paid for seniors housing communities and their operating margins. Throughout 2020, as occupancy and cash flow at senior care facilities dropped and costs of financing rose, we wondered exactly how the pandemic would affect the pricing of these assets. Would it have a disparate effect on skilled nursing versus seniors housing properties, older properties versus new ones, or on stabilized facilities versus non stabilized. We are almost done compiling all these statistics in the 26th Edition of The Senior Care Acquisition Report, but we wanted to highlight a historical trend that continued even through... Read More »
Senior Care Leading Indicators

Boosting Your Census Now

Occupancy levels continue to decline, yet demand seems to be increasing as customers are coming back to take a look. There is a disconnect between the seller and the buyer that needs to be fixed now. The public companies are about to start releasing their earnings and census reports, and it may not be pretty. But, it does not have to stay that way. My gut tells me that a lot of sales staff have been blaming the virus on their inability to sell and fill units. Makes sense, right? But what if how they are selling, and communicating, or not communicating with customers, is the real problem?  Do you think management and salespeople have adapted to the new environment, the new mentality of... Read More »
Welltower Still Sees Opportunity

Welltower Still Sees Opportunity

We all know that Welltower has been selling a few billion of seniors housing assets just like Healthpeak Properties has. But the difference is that Welltower is still buying. Not only that, they picked up a 790-unit portfolio operated by Harbor Retirement Associates for $132 million, or $167,000 per unit. The seller? Healthpeak (see story above). Even though the portfolio had negative lease coverage, we are sure Welltower is looking at that well-below-replacement-cost pricing.  But Welltower needs to pay attention to its own operating portfolio, where occupancy continues to decline. The average census was 77.3% in November, falling to 76.3%... Read More »
Callison Moves To Sunrise Senior Living

Callison Moves To Sunrise Senior Living

Jack Callison Jr. has been named the new CEO of Sunrise Senior Living, after the December announcement that current CEO Chris Winkle was leaving effective April 1. Ferguson Partners led the executive search effort. Mr. Callison has spent the last seven and a half years as CEO of Enlivant, taking over the role concurrent with TPG’s take private acquisition of the company. However, he will remain Chairman of the Board of Directors at Enlivant, and current president and COO Dan Guill will take over as CEO.   Before that, Mr. Callison spent five years in the CEO position at Holiday Retirement, some of which were a bit tumultuous. Running two different national seniors housing operating... Read More »