• National Health Investors Issues Another Update

    National Health Investors is continuing its steady census progress, but the rent deferrals for Bickford Senior Living just will not end. The silver lining is that the deferral amounts are decreasing, from $3 million in both March and April of this year and $2 million in June. Now, the two parties have agreed to $1.5 million in rent deferrals per... Read More »
  • Another Family Owner/Operator Exits the Industry

    As Covid-19 has led to overall decreases in senior housing occupancy levels, Sherer Management joined several of its peers by closing down its multigenerational family business with the sale of its last two CCRCs in Iowa.  These properties include a total of 188 beds at Rose Vista in Woodbine and Longview Home in Missouri Valley.... Read More »
  • HJ Sims Refinances Michigan Provider

    It took a couple of tries, but HJ Sims arranged $41.9 million in financing for Sunset Retirement Communities, a multi-campus, not-for-profit senior living provider in Michigan. The company has grown its holdings over the past decade, starting development on its Jenison campus in 2009 and completing it in 2015. Then, after completing a market... Read More »
  • Recent Senior Care M&A Deals, Week Ending June 18, 2021

    Senior care M&A is soaring back this month across all sectors. Check out our recent M&A deal chart. Long-Term Care   AcquirerTargetPrice Beacon Health10 skilled nursing facilities in Iowa$24.2 million Regional operator/private capital providerRose Vista in Woodbine and Longview Home in Missouri ValleyN/A Ciena HealthcareLincoln... Read More »
  • Drinking the Kool-Aid in Washington (State), Again

    The people of the state of Washington are getting closer to having to make a decision about a new payroll tax to fund a “long-term” care benefit, that is anything but long term. The 58-cent tax withholding for every $100 of salary and bonus may not seem like much, but the benefit is not much either.  This reminds us (sort of) of the Class... Read More »
Senior Care Centers/Abri Health Go Chapter 11

Senior Care Centers/Abri Health Go Chapter 11

On April 16, both Senior Care Centers and Abri Health Services filed for Chapter 11 bankruptcy protection. This is the second time in a little more than two years that Senior Care has filed for BK. In March 2020, Senior Care debtors emerged from bankruptcy (great timing), and as part of the reorganization, Abri Health was formed as the parent company of the Senior Care debtors and became a co-tenant and co-obligor with Senior Care under LTC Properties’ master lease.  The master lease includes 11 skilled nursing facilities in Texas with approximately 1,400 beds. LTC’s annualized revenue from the leases is about $15.0 million, representing 9.6% of LTC’s... Read More »
Promising Census Signs From National Health Investors Update

Promising Census Signs From National Health Investors Update

We are still waiting for that first sign that the seniors housing and care recovery has truly begun. There were some encouraging signs from Welltower’s SHOP portfolio when its census started to rise in the later weeks of March. But so far, that is it. Earlier this month, NIC reported that average occupancy at seniors housing communities fell to a new record low in the first quarter, to 78.8% from 80.6% in the fourth quarter.  National Health Investors also recently provided an update regarding its average occupancy and monthly contractual cash collections. Even though the REIT did not report an increase in census at its three major seniors housing operators, the decline has slowed... Read More »
Welltower Census Bottoming Out

Welltower Census Bottoming Out

Usually, a few weeks does not translate into a long-term trend, but for Welltower’s SHOP portfolio, it may just be the case. And it is one we have all been waiting for since it is the largest portfolio in the senior living sector to make some forecasts from.  After plummeting by approximately 1,200 basis points since February 2020, average occupancy has seemed to have bottomed out in March 2021 at 73.7%. The monthly declines in occupancy in the first quarter were already slowing, with March being the best of the pandemic era with just a 10-basis point drop. But for the weeks ended March 12 and March 19, it rested at 73.7%, before rising 20 basis points the next week and 10 the week after... Read More »
Capital Senior Living Comes Out With Fourth Quarter Earnings

Capital Senior Living Comes Out With Fourth Quarter Earnings

Better late than never, we suppose. On the last day of the first quarter, Capital Senior Living (CSU) came out with its fourth quarter earnings results, and the leaner (much leaner) company will hopefully be better able to navigate the numerous issues still facing it. Investors seemed somewhat optimistic, sending CSU shares up 3% in the hours immediately after the earnings call and up 12% early the next day, with the share price reaching a high of $42.00 per share on April 1.   There is some reason to be optimistic. Since CSU announced it had exiting all of its triple-net leases on January 7 (which resulted in reduced lease liabilities of $265.4 million and improved... Read More »
Getting Very Mad

Getting Very Mad

Academics say that PE firms are responsible for the deaths of up to 20,000 Medicare patients over 12 years. Reckless. I don’t know about you, but I am really getting mad at what I am reading. Four academics just came out with a research paper on the impact of private equity on the skilled nursing industry. Backed up by equations that few of us would understand, they concluded that private equity firms are responsible for up to 20,000 deaths of Medicare patients in nursing homes over a 12-year period. Really? The study included 128 deals for 1,674 facilities and 136 unique PE firms that acquired nursing facilities. Hmm. 136 “unique” PE firms. Even over 12 years that seems like a stretch. I... Read More »
Getting Very Mad

Skilled Nursing Needs A Break

With pressure from the media, the public and government agencies, the skilled nursing industry will be losing some of its best people. Not the time for that to happen. A good friend of mine sent me an article about a New York nursing home administrator who is angry at the fact that nursing homes have been villainized and scapegoated, especially in New York. Where were the car parades in front of nursing homes, like they were in front of hospitals, thanking them for caring for the frail elderly, he asks, and risking their lives as well? Nonexistent, sadly. He couldn’t take it anymore, and moved to Michigan, where he is happily working as an administrator after 20 years in New York. He has... Read More »