Capital Senior Living Files Registration Statement
At the end of last week, Capital Senior Living filed an S-3 registration statement for the issuance of up to $150 million in various securities. And when we say “various,” we mean it. It could be common stock, preferred stock, senior debt, subordinated debt, depositary shares, warrants, rights, units, purchase contracts…you name it. What we don’t know is if this was just a formality, with this shelf registration statement replacing an old one that was expiring. If so, no big deal. If not, and if they might issue new debt, stock or other securities, that could be a troublesome sign. After their fourth quarter earnings call, we felt a little better about their prospects, with... Read More »
Getting Personal With COVID-19
When COVID-19 hits close to home. So, here we are in week three of shelter in place. Actually, week four for me. Two weeks ago, I was about the only one wearing a mask in one of my two trips to the grocery store. Now most everyone is, which makes sense. On one of the trips, I was actually told by someone that I was not supposed to be wearing one because I was asymptomatic. My how things have changed. I live in a small town of 20,000, and we have had 82 confirmed cases of COVID-19 and 10 deaths. That’s a 12% death rate, and it has been at that rate for the past week and a half, with about one death a day. I assume that 12% rate will come down as more tests are given, but it does seem out of... Read More »
Navigating Today’s Lending and M&A Markets: A Q&A with Meridian Capital Group
Seniors housing and care M&A has slowed down considerably, which will not surprise anyone, and an abundance of caution on the buyers’ part has had a lot to do with that. But perhaps more so has been the reaction of the lenders, many of whom have taken a wait-and-see approach before lending millions to support acquisitions, new developments and even refinances. However, deals are still getting done, with even a mini M&A boom at the end of March into early April, so a number of lenders had to have signed off on those deals fully aware of the economic and practical realities of the current crisis. So how have these lenders adapted to the current environment?... Read More »
REITs Start To Cut Dividends
The healthcare Real Estate Investment Trusts have been the hardest hit in our sector during the recent stock market plunge. Many are worried about their own liquidity and drew down on their credit facilities, even if they didn’t need the funds now. Some just went and raised new debt to bolster their liquidity. They are obviously worried about their tenants’ future financial performance, and they know that wages, utilities and food bills have to be paid before rent. One REIT, Ventas (NYSE: VTR), has already offered to defer 25% of April’s rent until October. They had the largest credit facility drawdown of $2.7 billion. May is just a month away, and the environment will surely be... Read More »
Capital Senior Living Finally Reports
After a two-week delay, Capital Senior Living reports fourth quarter results, and a little of first quarter. After delaying its fourth quarter earnings release by two weeks, Capital Senior Living finally produced the results. And they were not as bad as we expected. Phew. To be honest, I was thinking it could be so bad that bankruptcy would be floated as an option. Not this quarter. The bottom line is that the fourth quarter was not good, with same-community year-over-year occupancy declining by 290 basis points to 81.4%, and the operating margin falling by 600 basis points to 29%. Both are very large drops in a 12-month time frame. And both are worse than their peer group. The good news... Read More »Schedule a demo
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