Occupancy at Brookdale Senior Living Slides
In a sign of the times, tough times, Brookdale Senior Living just announced its November occupancy results, and the numbers are sobering. Average occupancy for the month was 72.8%, a drop of 100 basis points from October, which was double the October drop of “just” 50 basis points. That is a cumulative decline in occupancy of 990 basis points since March. If the winter months are going to be as bad as Dr. Fauci is predicting, it is quite possible that we will start to see sub-70% occupancy levels. That will be a disaster. What is interesting in the case of Brookdale is that 89% of its communities were still open for move-ins as of November 30, so that is not the... Read More »
CCRCs Outperforming The Market
Just like in the skilled nursing industry, every 10 years or so there seems to be a movement that predicts the end of the CCRC market (or LPC for the not-for-profits). They claim that CCRCs are a dying breed, an old-style model, and no one wants to put down $300,000 and up to $1 million and more for an entrance fee. The reality, however, is that plenty of people want to. But, of course, no one “wants” to move into skilled nursing, while a CCRC is the ultimate mix of want, lifestyle and future need. The people who move into CCRCs are planners and looking at the long term. And long term it is, since the average length of stay surpasses anything else in seniors housing. It is not... Read More »
The New Skilled Nursing Investment Landscape
How have skilled nursing valuations changed, and when (if ever) will we get back to normal? Those were a couple of key questions in our November 19th webinar titled “Valuing SNFs During The Pandemic.” Our Managing Editor, Steve Monroe, hosted a panel with panelists Laca Wong-Hammond, Managing Director of M&A at Lument, Dan Booth, Chief Operating Officer of Omega Healthcare Investors, and David Reis, Chief Executive Officer of Senior Care Development, in which they discussed a range of topics on how the skilled nursing M&A market has been affected by COVID-19. Another question may be how has the business not changed? First, looking... Read More »
Ventas Reports Third Quarter Results
Ventas reported its third quarter results, and despite average census dropping below 80% for the first time, it remained on firm financial footing thanks to both federal relief grants and earlier moves to bolster its liquidity. In fact, Ventas improved its cash NOI from $402 million in the second quarter of 2020 to $545 million in the third quarter. Much of the gain came from its triple-net portfolio and mostly as a result of the agreement made with Brookdale Senior Living to reduce the provider’s annual cash rent to $100 million in return for consideration of approximately $235 million (including $162 million in cash) up-front. All of the $235 million in consideration is being amortized... Read More »
The “Post-COVID” Assisted Living M&A Market Takes Shape
It is safe to say the senior care M&A market in 2020 is quite different from that of 2019, in terms of the number of acquisitions closed, the values for senior care properties and perhaps most importantly, the types of properties actually put up for sale. Value-add and distressed communities have so far dominated the market since the onset of COVID-19, as owners of newer, stabilized communities are largely sitting on the sidelines to wait for a seller’s market again. Who knows when that will happen? Assisted living communities have been hit hard across the board, census-wise and with cash flow too. As a result, we have seen the sales of many struggling communities, which brought... Read More »Schedule a demo
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