Senior Care Stocks Remain in Doldrums
Seniors housing and care stocks remain in the dumps. There has been no Trump bump for them, as the rest of the market is up 16% since the beginning of this year. We should be only half as lucky. One would think that the skilled nursing dominated companies would have been the hardest hit, given all the talk of Medicaid block grants and census declines. But through mid-October, two of them have actually posted gains so far. Diversicare Healthcare Services is up 11% and The Ensign Group has eked out a small 2.2% gain so far this year. Meanwhile, National HealthCare Corporation has dropped nearly 15% this year, and Genesis HealthCare has plunged more than 75% and has settled in around $1.00... Read More »
Time To Invest In Brookdale Senior Living?
Recent bad news had no impact on Brookdale Senior Living’s share price, leading me to believe that bottom may have been hit. Is now the time to finally invest in Brookdale Senior Living’s stock? This week, the company announced that it will take an EBITDA hit to 2017 earnings of up to $13 million as a result of the hurricanes in Texas and Florida. In addition, they expect to spend up to $14 million in total for capital remediation for some of the affected properties. On top of this, it was announced that their COO will be leaving at the end of the month. A good COO is exactly what the company needs most right now, so this may be problematic. But, from what we had been hearing, this... Read More »
The Skilled Nursing Investors Speak
On October 12, we hosted a webinar called “Investing in Skilled Nursing Facilities,” where our editor, Steve Monroe, and a panel of experts, including Joseph Deans of Diversicare Healthcare Services, Steve LaForte of Cascadia Healthcare and Talya Nevo-Hacohen of Sabra Health Care REIT, discussed the skilled nursing M&A environment today. That spanned from who is buying SNFs and why, the discrepancy between record-high values and current industry headwinds, and whether SNFs will win the battle against LTACs and IRFs for the post-acute patient, among several other topics. But we also brought in the audience to get their opinion on a few issues too, and here are the results: Do... Read More »NIC MAP Q3 Occupancy Results Fall Short Of Expectations
In more normal times, whatever that may be, the third quarter is supposed to be a good one for occupancy increases, perhaps the best quarter of the year. Not so in the past three years, however. NIC MAP has reported yet another slow month for seniors housing occupancy, which does not bode well for the rest of the year or for early 2018. The modest (10 basis points) increase in assisted living occupancy, combined with the modest decrease (-10 basis points) for independent living, does not bode well for the fourth quarter, when recent weather-related events will surely have a negative impact. Following that will be the first quarter flu season problems, which in 2017 lasted well into the... Read More »
Who Is Investing In Skilled Nursing Facilities?
Despite reimbursement pressures and dropping occupancy levels, investment demand for SNFs remains high. But why? Do you want to find out who is investing in skilled nursing facilities and why? Perhaps you may be asking, who would invest in the SNF sector today when reimbursement pressures are growing, labor shortages are hurting, occupancy levels are dropping, and costs in general are rising faster than reimbursement? Actually, a lot of companies are investing in the sector. In fact, in the third quarter, 46% of the targets in the M&A market were skilled nursing facilities or portfolios. And the third quarter was not particularly unusual in this regard. The market remains quite vibrant... Read More »Schedule a demo
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