The Battle For The Post-Acute Patient
LTACs did not look too good in a recent OIG report, but SNFs fared better. Last month we hosted a timely webinar on who was going to win the battle for the post-acute patient, when and how. The “when” is still a subject of debate, but the “who” and “how” much less so. The who is definitely leaning towards skilled nursing facilities. But part of the problem is the name, which is just one reason why providers are changing their names to transitional care, post-acute care, rehab care…anything to get the reference to “nursing home” out of the equation. How many 35-year old’s would go to a nursing home for their post-op rehab? Not many. Transitional care? No problem. The “how” is a no-brainer:... Read More »
Brookdale Activist Saga Goes On
Here we go again. Land & Buildings Investment Management LLC is stirring up the pot with shareholders yet again after meeting with several members of Brookdale Senior Living’s board in what appears to be a very friendly meeting. Everyone would like Brookdale’s share price to be much higher than it is, and Land and Buildings is still pursuing the concept of spinning out the owned real estate assets into a new REIT using the RIDEA structure. But in a new twist, they want the best properties spun out into this REIT. They claim that it would produce $1.00 per share of cash flow (adjusted funds from operations), and that the market multiple on that would be in the mid to high teens,... Read More »
Great Financing Product For Acquisitions
Bridge loans are becoming increasingly important for acquisitions and renovations projects. Find out the details on this important webinar. If you are in the market for acquisitions, especially value-add acquisitions, or you want to do some major renovations on your existing building, do I have a financing product for you. I am talking about bridge loans, which are basically short-term loans to get you from point A to point B with your real estate. Their popularity has been increasing in the past few years, with more lenders and more types of products, providing even more liquidity to the seniors housing and care sector than before. Plus, some of the bridge lenders have created their own... Read More »
Genesis Healthcare Surges
Wow. It is amazing what a short analyst report can do to a stock, when it upgrades the recommendation to “Buy” with a price target that is 50% above the current price. That is what happened to Genesis Healthcare yesterday, after Chad Vanacore of Stifel wrote about the company and the improved outlook for skilled nursing in general. The previous closing price was $1.31 per share, and it surged by 26% to $1.65 in early trading on heavier than usual volume. Why? Signs of stabilization in the company’s core portfolio, improved reimbursement outlook for 2019 and beyond, a de-levering of the balance sheet and the divestiture of 55 facilities with unprofitable leases. That doesn’t mean it is... Read More »
What 10 Years Can Do
With everyone so fixated on the future (the upcoming flu season, the 2026 Boomer Boom, etc…), and rightfully so, we also think it’s important to peak back in the past to gain some perspective. A #flashbackfriday, if you will. November 2008 doesn’t conjure many fond memories for most industries, but particularly for the capital markets. By that month, the Dow Jones Industrial Average dropped below 8,000 (on its way to 6,443 in March 2009). Liquidity had dried up, and investors, more often than not, were looking to sell, not buy (even if some of those buys would have paid off many times over in hindsight). And when those selling shareholders had a target in mind, they went for blood, selling... Read More »Schedule a demo
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