60 Seconds with Swett: Rising Treasuries and Senior Care M&A
Momentum in the M&A market has continued into 2025, and there is general optimism that the new Administration that descended on Washington this week will be good for the business environment. Although there is some uncertainty around what, if any, tariffs are enacted and whether their effect on prices would potentially be blunted by falling energy costs and efficiency efforts, assuming “drill baby drill” and “DOGE” have a near-immediate effect. And we don’t know about the scale of the deportations and its impact on wages. However, if M&A activity started to take off last year due to the expectation of lower interest rates, then what effect will the 10-Year Treasury rate shooting... Read More »
Seniors Housing Occupancy Hits New Post-Pandemic High
NIC released its latest seniors housing occupancy update for the 31 NIC Map Primary Markets, and fourth quarter 2024 census has hit another post-pandemic occupancy high. Overall seniors housing occupancy rose to 87.2%, up 70 basis points from 86.5% in the third quarter. Separated out by property type, majority-independent living properties were 88.6% occupied in Q4, and majority-assisted living properties were 85.7% occupied. While the Primary markets averaged 87.2%, the 99 Primary and Secondary markets combined averaged 87.7% and the remaining 41 markets to round out the 140 total markets that NIC tracks averaged 88.5%. Overall, occupancy was 87.8% for all 140 markets. The last time... Read More »
Brookdale’s December 2024 Occupancy Drops
As we are now in full swing of the flu (and COVID) season, it is normal to expect that occupancy levels nationwide would decline slightly even though the seniors housing industry continues on its operational upswing. This is exactly what happened at Brookdale Senior Living. Consolidated weighted average occupancy in December declined sequentially by 20 basis points to 79.3%. This compares with 79.2% in September. In slightly better news, occupancy at the end of December was 80.5%, up 10 basis points from November, but still down 30 basis points from October and matching September’s level. However, Brookdale has now posted five straight months of month-end census above 80%, and barring any... Read More »
60 Seconds with Steve Monroe: First off, Happy New Year Everyone.
I suspect many of you think I am going to talk about the record setting M&A year in 2024 for long-term care, but I believe Ben has fully covered that and will continue to do so in the coming weeks as the stats are finalized. Plus, he now knows more than I do on the topic. No. I am going to talk about a book I just read, called The Big 100 by William Kole. All we have heard about for years, even decades, is the growth in the 80+ and 85+ population and what it will do for the seniors housing industry. This book is about the 100+ population, called centenarians, and super-centenarians, those who have attained 110 years and older. The centenarian group is the fastest growing age cohort,... Read More »
Brookdale and Ventas, a Win-Win
Just weeks after Brookdale Senior Living walked away from its lease renewal with Ventas covering some 120 communities, the two companies came to an agreement that appears to be a win-win for both. Brookdale will continue to lease 65 communities which average about 62 units each and represent 40% of the units in the original master lease. The initial cash rent on these will increase by 38% and will now be $64 million with 3% annual escalators. But for 2025, Brookdale will pay the contractual rent of $48 million on these. For the remainder, 44 communities will go into the Ventas SHOP portfolio with new operators, to be determined later. Annualized NOI for these after a 5% management... Read More »Schedule a demo
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