Second Quarter Occupancy Results
NIC MAP just released its second-quarter occupancy trends results, and unfortunately, it was not what the industry had hoped for. For the overall seniors housing industry, average occupancy remained flat at 78.7% from the first quarter to the second quarter. Given the reports of bottoming out by March for several of the large operators and the REITs with large operating portfolios, and strong census increases in April and May, we were a bit surprised that the quarter-to-quarter change was stagnant. We figured maybe at least a 50-basis point increase or higher. The one thing this tells us is that the early spring momentum did not carry over into June. Or possibly it was the... Read More »
M&A in May Falls Flat
Despite the positive occupancy news coming out of seemingly every earnings announcement in May, buyers held back this month, announcing just 26 transactions. To be fair, that total beat’s February’s 25 publicly announced transactions (albeit being a 28-day month), and tied January. But it was off of March’s 29-deal tally and April, when a “whopping” 32 deals were announced. We know that plenty of both buyers and sellers are waiting for a three- to six-month period of sustained occupancy and NOI growth before either risking the purchase or getting the desired price. But with a surge of deals closed at the end of April, we also thought a certain barrier had been broken and... Read More »
CCRCs Still Leading In Occupancy
Ziegler just came out with its quarterly analysis of occupancy trends for CCRC (LPCs) in conjunction with the NIC MAP data, and while census is still slipping, the sub-sector has fared better than the other components of the senior living spectrum. The data set used includes 1,134 CCRCs in both primary and secondary markets, as defined by NIC MAP. It is not clear how the other 800 or so CCRCs have performed. All CCRCs posted an average occupancy rate of 84.3% in the first quarter 2021, a drop of 720 basis points from the first quarter of 2020. While somewhat shocking, that performance is better than assisted living and skilled nursing. And, starting from an average... Read More »
Senior Care M&A Tanks In Q1
After a strong fourth quarter, senior care M&A activity cooled off this winter. We thought that after 59 seniors housing and care M&A transactions were announced in December 2020, a monthly record, we had returned to some kind of “normal” in terms of dealmaking. Well that just didn’t happen in the first quarter of 2021, when despite widespread vaccination of the senior care population investor activity cooled to just 77 publicly announced deals. That is just a preliminary total but is well off Q4’s total of 127 deals. M&A in the skilled nursing sector especially slowed down, accounting for just 32% of the deals announced during the quarter. But it makes sense. If various... Read More »
Bifurcation Between Stabilized and Non-Stabilized SNFs Grew in 2020
In some ways, the pandemic only rubbed salt in the wound in terms of occupancy across skilled nursing facilities nationwide. Average census across the skilled nursing industry was already languishing between the mid- to low- 80% range before the pandemic temporarily shut the doors to many facilities, paused elective surgeries and sent more post-acute patients home to recover. These problems adversely affected the older, mostly-Medicaid facilities and were only made worse in 2020. That means digging out from the pandemic will be a tougher assignment, and buyers paid accordingly in 2020, averaging $55,300 per bed for non-stabilized facilities reporting occupancy lower... Read More »Schedule a demo
Gain access to the best healthcare and long-term care investment intelligence, data, and analysis.
