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 »
Where Occupancy May Be By July
The coronavirus was much worse then expected, as was its impact on senior care providers. I have to admit I was wrong, but just the third time in 34 years. In late February, I referred to the coronavirus as the flu on steroids, and that the senior care industry was prepared to deal with it. I was wrong on both accounts. It was much worse than anything on steroids, and many providers were not prepared for this one. I am not sure anyone could have adequately prepared for a deadly disease that can be quickly spread by asymptomatic staff and visitors. Some people think they have escaped the worst part of the coronavirus, and they may be right. But this is not going to be a short-term problem.... Read More »
Welltower Is Going Transparent
First, we have to applaud Welltower for being very transparent with regard to what is happening with its customers, specifically its seniors housing operating portfolio (SHOP) customers. This is very important, not only for REIT investors, but for the entire seniors housing community to better understand how this COVID-19 pandemic is impacting business, but also the general economic deterioration. Last month, Welltower disclosed that its SHOP portfolio, which includes 612 properties with more than 73,000 units, had seen 20-basis point declines in occupancy every two weeks in March, that costs were rising and that tours and move-ins were starting to decline. This... Read More »
Some Providers Succeeding Despite COVID-19
All we hear about is how COVID-19 is spreading through skilled nursing facilities and some seniors housing communities. Bad news sells, pure and simple. We certainly know that, and there has been plenty of bad news the past few years, and weeks. Have you ever seen the headline, “65 residents at assisted living community drank and danced at a Mardi Gras party”? Really, never? It has happened. But it is not all doom and gloom out there. Last week we spoke with a mid-sized California operator of assisted living communities in the state, and so far, they have been spared much of the COVID pain. Of the approximately dozen or so assisted living communities they operate, just four... Read More »Schedule a demo
Gain access to the best healthcare and long-term care investment intelligence, data, and analysis.
