Getting Brookdale Senior Living Wrong
As recently as two years ago, there were a lot of investors and analysts who were very positive on the prospects for Brookdale Senior Living. Rarely have so many people been so wrong. And these are smart people. Perhaps the most egregious analysis came from Glenview Capital Management just two years ago. How wrong can wrong be? In August of 2015, they listed six reasonsthat would drive Brookdale’s growth. One was that new demand is exceeding supply across the industry. Whoops. A second reason was “private negotiated rates,” not being aware that what was negotiated was discounts. Whoops again. And the one that made us scratch our heads was, “Senior living facilities are considered to be... Read More »
Senior Housing & Care Acquisition Pricing Softens
Across the senior housing and care spectrum, average per-unit and per-bed prices softened a little in the four quarters ended September 30, 2017. I am sure a lot of you have heard that the senior housing acquisition market is soft, reflecting concerns over census and rising costs. But how soft? Not very, according to our recent acquisition data. For the four quarters ended September 30, the average price per unit for assisted living did drop compared with the four quarters ended June 30, but by only 4% to $208,200. It is still higher than the $193,650 per unit for calendar year 2016. The average AL cap rate dropped to 7.9%. The independent living market softened a little as well, with the... Read More »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 »Schedule a demo
Gain access to the best healthcare and long-term care investment intelligence, data, and analysis.
