Brookdale, HCR ManorCare and NIC
Two major companies make decisions, one with a path forward and the other still unclear, and they will be the talk of Dallas at the NIC conference. As the senior care investing world descends on Dallas today for the Spring NIC conference, the giddy tone of the newcomers may be sobered by the recent events at Brookdale Senior Living and HCR ManorCare. Brookdale was the worse story, with its share price now down 80% from three years ago. The announcement last week that HCR ManorCare will submit a pre-packaged bankruptcy filing and become a wholly-owned subsidiary of landlord Quality Care Properties was not a surprise, but just confirmed that the skilled nursing sector has a long struggle... Read More »
Skilled Nursing Price Drops
When the average price per bed for skilled nursing facilities drops, the consistency in that drop is unparalleled. Here is something to ponder. We know that after a nice five-year run-up, the average price paid per bed in the skilled nursing market dropped by 18% last year, according to our new statistics. That was obviously a significant plunge, especially since the average had doubled in the previous five years. So, I decided to go back and see what happened in other years since 2000 when there was a drop. It turns out there were four years when there was a price drop of any significance. These included 2003, 2008, 2011 and 2017. What is weird is that the decline in each of those four... Read More »
Brookdale Blows Up
Talk about missed opportunities. For the past 12 to 18 months, or much longer depending on which “process” you were talking about, Brookdale Senior Living has been looking to do a strategic capital event, which everyone took to mean a sale of the company to the highest bidder. The problem has been the phrase “highest bidder,” as the price a bidder would be willing to pay kept falling throughout the process, and the longer the process went on, the lower Brookdale’s stock price fell, which resulted in lower bid prices, and the cycle just continued until the fiasco that unfolded yesterday. In the middle of the night, Brookdale issued a press release disclosing that they would hold their... Read More »
Bad Flu Season, But That’s Not The Story
It is a horrific flu season, but it may be unfairly blamed for current seniors housing woes. So, we have all been hearing about this horrible flu season, especially with the unusual number of children’s deaths, including in my home town. But what I fear is that it will be blamed for more than its fair share of census problems in the senior care market. Granted, when the worst flu season in nearly a decade hits, it is bound to impact senior care communities, where the residents are much more frail than the population as a whole. But for some reason, this flu season is impacting seniors housing communities, and companies, in very different ways. Believe it or not, some have seen little to no... Read More »
Will New Records Be Set in 2018?
On Thursday, February 15, our Editor Steve Monroe moderated a 90-minute webinar titled “Will New Records Be Set? The Numbers, the Deals, the Stats on all Seniors Housing and Care M&A,” with a panel of experts to discuss the 2017 seniors housing and care M&A market, with pricing statistics from our upcoming Senior Care Acquisition Report, to be published next month. There were a few records set in 2017 (for details on those records, check out either the webinar or the Report), but with labor, occupancy, overdevelopment and interest rate headwinds facing the seniors housing and care industry, would that robust M&A market continue into 2018? That’s what our panel of experts,... Read More »Schedule a demo
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