Ventas Reports Third Quarter Results
Ventas’ third quarter results are in and were less than optimal for its seniors housing operating portfolio (SHOP). Comparing the third quarter of 2019 with the same quarter in 2018, same-store cash NOI for its SHOP fell by 5.0%. Occupancy figures were not pretty either, with the quarter ending approximately 115 basis points lower than the end of the third quarter of 2018. The average third quarter occupancy compared with the average of Q3:18 was a less drastic 70-basis point drop. The company acknowledged that overbuilding in some markets led to price competition and pressure on revenues (a refreshingly honest admission when compared with other public companies), which contributed to the... Read More »
The Pennant Group Debut
The Pennant Group is The Ensign Group’s latest spin off. If history repeats itself, the new company will succeed. It has been three weeks since The Pennant Group was spun out of The Ensign Group as a separate publicly traded company. This is not Ensign’s first rodeo when it comes to successful spin outs. Five years ago, it spun out the majority of its real estate assets (and mostly skilled nursing) into CareTrust REIT, which has been among the leaders in shareholder return among healthcare-oriented REITs. As Ensign grew its senior living and home health and hospice business, management decided that shareholders would benefit from higher valuation multiples if these assets were spun... Read More »
Preparing for the Future of Seniors Housing
On October 15th, subscribers to The SeniorCare Investor and members of the American Seniors Housing Association (ASHA) met at the Duane Morris offices in New York City to discuss a topic relevant to many of our readers: the future of the seniors housing market in the 2020s and beyond. Where do you begin on a topic like that? Well, Steve Monroe led a panel discussion with Wayne Kaplan of Premier Senior Living Group, Matthew Whitlock of Berkshire Residential Investments, Jeffrey Sands of HJ Sims, Steven Krieger of Engel Burman and Meredith Oppenheim, an industry expert and alum of Sunrise Senior Living and Ventas. The conversation was wide ranging, but here were some of the key takeaways:... Read More »
Assisted Living M&A Market
Despite many headwinds, the assisted living acquisition market remains vibrant with high prices and no shortage of buyers. Find out how they are dealing with the issues of aging properties, census and labor in this dynamic webinar. Prices paid in the assisted living M&A market remain high, despite census, labor and demand headwinds. Obviously, low interest rates and plenty of equity capital have helped maintain current pricing levels. But buyers, and sellers, are facing many issues right now, and into the future. Despite all the new development during the past five or more years, the acquisition market is filled with older assisted living communities, and the ones built in the 1990s... Read More »
Brookdale Settling in for the Slog
Now that Land & Buildings has ended its proxy fight to get former HCP, Inc. CEO Jay Flaherty on Brookdale Senior Living’s board of directors, it is apparent that Brookdale management can now face the long, tough slog to enhance operations, census and cash flow, the old-fashioned way. Unfortunately for shareholders who invested at much higher prices than the current levels, the wait may be a long one to get back up to breakeven. It is those newcomers to the stock that may get impatient, again, for management to do something as the share price heads higher. Right now, at $8.48 per share, it is 41% higher than at the beginning of June, and 15% higher than three weeks ago. Progress. We... Read More »Schedule a demo
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