Brookdale, Genesis Report Tough Quarters
Brookdale Senior Living and Genesis HealthCare, the two largest providers, were not spared from COVID’s devastation in the second quarter. The two largest providers in their respective sectors, Brookdale Senior Living in seniors housing and Genesis HealthCare in skilled nursing, did not escape COVID’s wrath. No one expected they would. Fortunately for Brookdale, they have negotiated most of their underwater leases, so that will lessen the economic pain. But consolidated occupancy fell 440 basis points from the first quarter to the second. As of July 31, occupancy was at 76.6%, 120 basis points below the June 30 level. And COVID is spreading in two of its largest states, Florida and... Read More »
For Ventas, Welltower, Second Quarter Could Have Been Worse
Second quarter earnings reports are not done yet, but the majority of the companies and REITs have reported. We were obviously not expecting a good quarter, but given the trend lines from March through June, the results could have been worse. In fact, for many companies it appears as if the worst is behind them. Or maybe it is better said that the bad news is getting less so. Let’s just say, the fat lady has not completed her song yet. Before we get into some of the specifics of the two largest REITs, which happen to have the largest seniors housing operating portfolios, we do have some observations from the companies reporting. First, it appears that labor costs have declined for... Read More »
The Ensign Group Hits Record, Raises Guidance
We didn’t expect much positive news from the plethora of earnings announcements coming out these two weeks, but The Ensign Group defied expectations by achieving its highest adjusted earnings per share in its history of $0.78, an increase of 100% over the second quarter of 2019 and slightly above the previous record-setting Q1:20. The operator also raised its 2020 annual earnings guidance to $3.00-$3.10 per diluted share, up from the previous guidance of $2.50-$2.58. The news sent its share price soaring from $48.68 at close on August 5 to $57.99 on heavy volume on August 6 and even higher to $58.32 on August 7. Ensign also announced that it has returned all of the PPP... Read More »
Capital Senior Living Returns 18 Properties to Fannie Mae
It’s been quite a week of earnings announcements from the publicly traded senior care companies, with Healthpeak Properties, Welltower, CareTrust REIT, Sabra Health Care REIT, Omega Healthcare Investors, Five Star Senior Living, Diversified Healthcare Trust and The Ensign Group all reporting. Capital Senior Living Corporation also came out with its second quarter results, and surprised some by revealing it was turning 18 properties in forbearance with Fannie Mae back to the agency lender. We have never heard of a company basically handing the keys over to Fannie Mae for that many communities. It is safe to say we are in unchartered territory that does not fail to surprise us, to say the... Read More »
HealthPeak, Welltower, Ventas and Others Report This Week
In the next 48 hours, six companies will report second quarter earnings. While it won’t be pretty, you have to think long term. Earnings season is here, and I am afraid it will not be very pretty. Unfortunately, it has not been pretty for a while, but we can always hope. Six companies will be reporting second quarter earnings over the next 48 hours. Everyone is trying to put as good a face on it as they can, especially since we all know that at some point in the future, it will get better. The questions are when, which sectors will start improving first, and how much better will it get? The thing I have a hard time reconciling is that there is still plenty of equity capital out... Read More »Schedule a demo
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