Sonida Senior Living Keeps Pushing Census
We have been impressed by Sonida Senior Living management’s ability to get out of its census, cash flow and balance sheet difficulties over the past year. After some acquisitions this year, the company now operates 93 senior living communities, most of them owned. In the third quarter, same-community occupancy for 61 communities increased by 210 basis points year over year to 87.0%. That is well ahead of many other operators, as well as higher than the NIC MAP census averages. They are well on their way to hitting the elusive goal of 90% occupancy. Speaking of 90% occupancy, management believes that when they reach it for their same-community portfolio, the NOI margin for these... Read More »
60 Seconds with Steve Monroe: The Election And Senior Care
So, the 2024 election results are in, and many people were surprised, many shocked, some cried and some cheered, and many who did not vote wished they had. But wherever you are on the political spectrum, if you invest in seniors housing and care, the outlook for you may be better with the election outcome. I say that because Mr. Trump is more pro-business and pro-real estate than Ms. Harris, and the Biden/Harris administration was set to make some changes in staffing and PE investing which our sector was not too happy about. The proposed nursing home staffing mandate will most likely go out the window, and pressure on private equity investing in seniors housing may be put on the backburner... Read More »
Brookdale Q3 Results Disappoint
Historically, and we are going back more than 12 years, the third quarter has been the best quarter of the year for occupancy increases, and usually cash flow increases based on those census jumps. This was certainly the case for Welltower and Ventas this year, the two largest owners of seniors housing communities. Unfortunately, Brookdale Senior Living, which continues to underperform the market and lags these two REITs, leaves investors disappointed and wondering what is wrong. And dare we say disillusioned with management’s forecasts, which have not panned out at all this year. Don’t get us wrong. Occupancy has increased, but not in the way investors expected, and “little” things like... Read More »
SHOP at National Health Investors Outperforms
At National Health Investors, it seems to be all about SHOP, SHOP, SHOP. Although it is a small portfolio at just 15 properties, it is becoming mighty. September’s occupancy was 89.1%, compared with 81.2% a year ago, representing a 790-basis point increase. From July 2023, the increase was 1190 basis points. It is now the highest occupancy portfolio of the major property groups for NHI. The sequential increase from August was 60 basis points. The SHOP NOI increased 30.4% year over year and represents the highest quarterly result since the portfolio’s formation in April 2022. As we have written previously, SHOP portfolios are performing well, and REITs are expanding them. All is not... Read More »
Welltower Continues To Outperform
Welltower announced its third quarter earnings results, and they were better than even the most optimistic investors thought they would. Probably better than what CEO Shankh Mitra thought they would be six months ago. Everything is up, and while not where the numbers were a few years before Covid, the performance is better than most. Same-community occupancy in their SHOP portfolio grew by 310 basis points year over year and RevPOR grew by 4.9%. And same-community NOI increased by 300 basis points. The REIT completed $2.4 billion in gross investments, and it has an acquisition pipeline that would make the other REITs blush. But don’t forget, it has nothing to do with their cost... Read More »Schedule a demo
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