Early Signs of COVID-19 In Several REIT Earnings Reports
Several publicly traded seniors housing and care companies released their first earnings reports after the COVID-19 crisis, and while most of the results showed signs of the virus’ effect, the worst is most likely yet to come. As a consequence of that, each company pulled their 2020 guidance, but no surprise there. LTC Properties reported on May 4th, and there were some results unfortunately typical for this time. Private pay occupancy fell from 86% at December 31 to 83% by March 31 and 80% on April 23rd. For skilled nursing, average monthly occupancy for December 2019, March 2020 and April to-date respectively was 79%, 78% and 75%. That drop from March to April is roughly in line... Read More »
Brookdale Senior Living Reports
Brookdale Senior Living reported first quarter earnings and operating results that, in some respects, were better than some investors may have expected. The problem is that everyone is expecting the worst as COVID-19 deaths keep on increasing. The reality, however, is that this pandemic really had little or no impact on the first two months of the quarter for operators. It was the last few weeks of the quarter, and obviously, the entire month of April, that started to do the damage. Management reported that fewer than 1% of its residents had tested positive for the coronavirus, so that means that there are probably many buildings that are virus free, and we assume they are marketed as... Read More »
Amnesty For Senior Care Providers
There has been a push for providing amnesty to senior care providers for COVID-19 lawsuits, and it makes sense . As you know, there has been a big push for states, or the federal government, to offer amnesty to senior care providers from lawsuits related to COVID-19 deaths, other than for cases of egregious neglect. Families and trial attorneys don’t want to hear anything of it. The reality is, suing hundreds of providers will accomplish very little other than lining the pockets of some lawyers and providing some financial comfort to family members. The reality is that it will not be easy to prove “neglect.” As horrible as some of the stories in skilled nursing facilities have been as... Read More »
Deal Flow Stalls…For Now
Seniors housing and care acquisitions came to a standstill, waiting for any positive news. So, I can’t remember the last time we went a full week without one seniors housing and care acquisition announcement. Perhaps in the depths of The Great Recession, but that was more than 10 years ago. Last week, there was nada, zippo, and it seemed to carry over into the start of this week. If you were not approaching the finish line by the end of March, for most deals, they just never crossed. There are a lot of disappointed sellers and brokers, but we have to assume the deals have just been put on hold until some degree of normalcy returns. But it may be a new normal, and lenders and buyers may... Read More »
Genesis HealthCare & Capital Senior Living Put On Notice By NYSE
So far, two of the publicly traded senior care companies have received notices from the New York Stock Exchange warning them that they are out of compliance with the continued listing standard that requires a minimum average closing price of $1.00 per share over a consecutive 30 trading-day period: Capital Senior Living Corporation (April 10) and Genesis HealthCare (April 17). CSU dropped as low as $0.45 per share, while GEN fell to $0.78 per share. Genesis was still in compliance with the minimum market capitalization threshold of $50 million over a 30 trading-day period (at more than two times that level), but CSU’s average market cap did fall below the threshold. Both companies will... Read More »Schedule a demo
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