Can Federal Funds Come Without Strings?
Can the seniors housing sector expect to receive federal funds during the pandemic without some strings attached, like regulations? As the health care industry tries to deal with the rising costs of the coronavirus pandemic, the funds available may get tighter and tighter. So far, it has been hospitals and nursing facilities that have received much-needed federal aid. Nursing facilities have been given direct daily rate increases to deal with the rising costs of PPE and labor. The private-pay seniors housing sector, however, has been left out, so far. It has not been without a major effort to obtain federal funds to help with the sector’s own rising costs. Testing kits for all staff and... Read More »
Bashing Our Senior Care
Getting tired of the media and politicians bashing the senior care sector. Is anyone else tired like I am. I don’t know whether it is the worry about the economy, being infected with COVID-19, having no social life, wondering when the next wave will hit. I could go on. But what I am really tired of is CNN’s relentless bashing, and the politicians who are piling on, looking for someone to blame, like they always do. But what really ticked me off was the April 29 letter that Senators Elizabeth Warren and Ed Markey, along with Congresswoman Carolyn Maloney, sent to the leaders of a half dozen of the largest senior living providers. They had a laundry list of more than 50 questions they... Read More »
A Conversation With HealthTrust
Last week, we sat down with Alan Plush and Colleen Blumenthal, partners at national valuation and consulting firm HealthTrust, based in Sarasota, Florida, to talk about how the coronavirus pandemic will impact valuations and how they will go about their work. We all know that COVID-19 is taking a toll on the senior care sector, particularly skilled nursing. Why are appraisals and valuation consulting in general more important today than ever before, when done by professionals who have been through a few crises before? Alan Plush – It allows moderation on both sides. First, values don’t decrease too much (as if assuming this lasts forever), and... Read More »
Ventas Makes Changes, Dividend Is Not One Of Them
The earnings reporting season is coming to an end, and the odds were that Ventas would cut their second quarter dividend payable in July, much like what Welltower, Sabra Health Care REIT and Diversified Healthcare Trust have done. They would have every reason or excuse to do it. A cut was already somewhat embedded into their share price. Their funds available for distribution were shrinking. But it didn’t happen. A decision will be made about the next dividend sometime in June. Investors were pleased, sending the shares up by 10.5% on May 8, driving the yield down a bit to 10.5%. That is still double its recent “normalized” dividend yield, which has been in the 4.5% to 5.5% range in... Read More »
Going Concern Problems at Capital Senior Living
Late last Friday, Capital Senior Living announced that it expects to disclose its first quarter earnings results before the market opens on May 21, and then hold its conference call with analysts. It will not be pretty. Also late Friday, the company filed an 8-K with the SEC stating that the coronavirus was taking its toll, and we quote: “The sudden onset of COVID-19 has had a significant adverse impact on occupancy levels, revenues, expenses and operating results at our communities. Although we are unable to predict the full nature and extent of the impact of COVID-19 at this time, we expect COVID-19 will continue to have a significant adverse effect on our business, financial... Read More »Schedule a demo
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