AlerisLife Sees Healthy Occupancy Boost in Q3
AlerisLife announced its third quarter earnings results, and the good news was that its owned portfolio including 20 senior living properties saw a 290-basis point increase in quarter-end occupancy from 75.5% in Q2:22 to 78.4% Q3:22. Its managed portfolio of 120 senior living properties increased a more modest 160 basis points to 77.0% over the same period, but both figures are healthy increases. Operators need to make the most of third quarter occupancy gains before winter weather and the flu season hamper their efforts, so this is good news for Aleris. But average occupancy still falls below 80%, so there is a long way to go. The company reported a net loss for the third quarter of 2022... Read More »
LTC Properties Reports Q3 Earnings
LTC Properties reported its third quarter earnings, and in addition to a healthy loan originations strategy, the company made some M&A moves in the quarter. Most notably, the REIT contributed $61.7 million into a joint venture that purchased three skilled nursing facilities located in Florida for $75.8 million, or $253,500 per bed, and leased the properties to affiliates of PruittHealth, Inc. under a 10-year master lease, with two five-year renewal options. Additionally, the master lease provided PruittHealth with a purchase option exercisable at the beginning of the fourth year through the end of the fifth year. LTC expects to receive net income from this investment of approximately... Read More »
Ensign Group Does It Again
Perhaps The Ensign Group should hire Britney Spears to perform at its Holiday party this year, and she can sing, “Oops, I did it again.” Because that is exactly what Ensign did. Another profitable quarter notched in its belt when too many skilled nursing operators continue to suffer, and it upped its earnings guidance for the rest of the year, the second time it has done so this year. The skeptic would claim they just give low guidance so they can keep on upping it. We don’t really care, as long as they keep on performing as they do. The “market,” however, was disappointed because Ensign missed consensus earnings per share estimates by one penny, so the share price dropped by 4%. Ho hum.... Read More »Health Care M&A On Pace for Record Year
Despite a volatile market, healthcare investors are undeterred. Inflation, significant labor issues and declining stock value are major headwinds that should be slowing down activity, but the past few quarters have shown the resilience of the healthcare M&A market. Nearly 1,800 healthcare deals were announced through the end of September, a steep increase from the 1,560 sales reported in the same period in 2021. This year will break records if activity continues at this pace. Investors and dealmakers announced 686 deals in the third quarter, representing a 5% drop from the 731 transactions reported in the second quarter. With all the headwinds hitting the industry, we expected a more... Read More »Health Needs of Seniors in Seniors Housing Communities
At the recent Fall NIC Conference, NORC at the University of Chicago presented the findings of a recent study of seniors housing residents. We are sure Medicare Advantage plans have combed through the data, as much of it was an eye-opener, even for us. The study cohort included more than 250,000 seniors housing residents and more than 325,000 in nursing homes enrolled in fee-for-service. In seniors housing, the residents were pretty evenly split among majority IL (32.5%), majority AL (31.6%) and CCRC/LPC (30.0%). The most shocking discovery was that CCRC/LPC residents have an average of 12.2 chronic medical conditions. In theory, these are among the healthiest of residents in senior living... Read More »Schedule a demo
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