Genesis HealthCare Sees Share Value Rebound
It’s no surprise that Genesis HealthCare has seen a significant drop in its share value as a result of Covid-19. The company owns and operates facilities that care for a medically-complex population that is most vulnerable to the virus, which is a huge risk in itself. The horrifying situation at a Life Care Centers facility in Kirkland, Washington, where 129 cases of Covid-19 have been confirmed (81 residents, 34 staff members and 14 visitors) and 35 people have died (more than half of the state’s total), has also colored the image of SNFs in this situation, probably contributing to the flight of capital from the sector’s stocks. During the massive... Read More »
People on the Move, March 2020
Right before Covid-19 brought everything to a stand-still, there were some hiring announcements in the senior care industry worth mentioning. We hope virtual onboarding can be just as effective. JLL Capital Markets announced that Alanna Ellis has joined the firm as a Director in its Seattle office and will be responsible for sourcing debt and equity placement business for healthcare, seniors housing and hospitality transactions. Ms. Ellis has 22 years of real estate experience, with the last 12 years focused exclusively on the commercial real estate finance and development sector. Most recently, she was a Senior Partner/Vice President of Commercial Lending at IPG, where she worked for 13... Read More »
Surviving The Coronavirus
What a difference five days, and 3,200 miles can make, not to mention panic selling in our sector. Well, we certainly are living in interesting times. And not fun times. I decided to stay with my plans and went to Scotland for a bachelor party last weekend. No kidding. It was fun and was a great bonding experience with my future son-in-law. I hope he feels the same way. The return was hassle free, but it was a different country I returned to from what I left on Thursday night. School, restaurant, store and theater closings, to mention a few, plus shelter in place orders, added to the panic. And talk about panic. Senior care and healthcare REIT stocks were pummeled more than any other... Read More »
Collapse of Brookdale and Capital Senior Living Continues
We are officially in unchartered territory. It is now quite embarrassing that we stated two years ago, as Brookdale Senior Living’s share price dropped below $10, that it had reached a floor. Yes, hindsight is 20/20, but we don’t know anyone who really predicted how drastic it has actually become for senior living stocks. The question is, what to do now? The second question is, will it get worse? The day-to-day volatility in the stock markets is unprecedented. The day-to-day declines in values in our sector are even more unprecedented. It seems that when the major indices drop by 10%, our sector, including the REITs, drops by 20%. It is a magnification of the worries brought on by the... Read More »
Ventas Preparing For Worst
There is no way to mince words. When it comes to valuation, Ventas is a shadow of its former self. After being worth more than $20 billion, its market cap has dropped to just $7.8 billion. This compares with Welltower ($15.8 billion) and Healthpeak Properties ($11.8 billion). So much for the “Big Three” REITs. This is new territory for Ventas and its CEO, Debbie Cafaro. But who knows, maybe the Penguins will win the Stanley Cup this year, if there is one. Ventas, like Brookdale Senior Living, has withdrawn its 2020 earnings guidance. It stated that tours and move-ins at its operators are beginning to slow, even though the first two months of the year met previous expectations. What a... Read More »Schedule a demo
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