The Skilled Nursing Rebound
Average prices per bed ticked up over the past four quarters, and Genesis Healthcare posted better results. In this month’s SeniorCare Investor, I talked about the recent rise in the average price per bed for skilled nursing facilities for the most recent trailing four quarters. A small rise, but up nonetheless. Perhaps the start of a SNF rebound. And then Genesis Healthcare reported its second quarter results, and while they still have a ways to go, they too have seen some improvement. Small, but we will take it. Compared with the year-ago quarter, occupancy was up 250 basis points to 86.6% and the EBITDAR margin was up 79 basis points to 13.6%. Now, some of this improvement most likely... Read More »
Brookdale and Capital Senior Living Earnings Disappoint
We are not sure why investors continue to think there may be some break-through news every quarter when the big seniors housing companies report earnings. This has been, and is going to continue to be, a slog to get through the mess created by too much development exacerbated by labor problems. Brookdale Senior Living’s management put a positive spin on the quarter, such as associate turnover improving by 5% compared with last year, and same-community move-ins showing positive year-over-year growth. That is all good news, but it will not be enough to pacify shareholders who want to see much more to move the valuation needle. And while some categories of occupancy showed improvement, such... Read More »
The Great Development Slowdown
Everyone is talking about development slowing down, but over development is just part of the problem. We have been hearing it for a few months: seniors housing development is slowing down, based on fewer new construction starts. We have heard it from NIC MAP, from HCVenTower, and now Brookdale Senior Living. They are all saying that in many of their markets, they are seeing light at the end of the over-development tunnel. Maybe. It is one thing if new starts are declining, but it is quite another to fill the current empty units plus the new supply that is currently opening, and going to open. Let’s just say, we are not out of the woods yet, and census is only one part of the problem. Not... Read More »
Land and Buildings Strikes Again
Still trying to get two board nominees, Land and Buildings steps up its criticism and need for change. Well, well, well. Jonathan Litt of Land and Buildings is at it again, this time with a six-page letter to Brookdale Senior Living shareholders, eviscerating Brookdale’s management and board, past and present, for the company’s severe underperformance over the past 10 years. So, what else is new? Look, management and much of the board has changed and the only ones who can be blamed for the disastrous Emeritus acquisition are the old management, the former board and perhaps their advisors, who should have known better. Highlighted in his letter was the underperformance of Brookdale... Read More »
Ventas Reports Second Quarter Results
Ventas (VTR) was the first one out of the block to report second quarter earnings, and while the results were about as expected, on the seniors housing and care side the turnaround has still not arrived. In fact, the second quarter was disappointing but not unexpected, given all the quiet industry talk about census, margins and staffing costs. One caveat is that just four companies make up two-thirds of VTR’s seniors housing and care portfolio, and one can question whether they are representative of the industry. But since two of the four are Atria Senior Living and Sunrise Senior Living, we are not talking about the dregs of the sector. For the seniors housing operating portfolio (SHOP),... Read More »Schedule a demo
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