Senior Care M&A Spending Hits Highest Level Since 2014
Total dollar volume did not break any records in 2019, but it was still the third-highest annual total ever recorded, and the highest since 2014 according to our just-published Senior Care Acquisition Report, 25th Edition. And that was without a single deal in the top-16 prices seen in the sector (2006 and 2014 had two and four, respectively). In fact, there were only two transactions valued above $1 billion: Ventas’ $1.8 billion purchase of Le Group Maurice’s Canadian seniors housing portfolio and KKR’s $1.75 billion acquisition of the Benchmark Senior Living portfolio from Welltower. However, the 2019 M&A market was larger and busier than people think, and that is... Read More »
Assisted Living Values Break Record
With cheap and abundant capital in hand, and plenty of brand-new properties built during the recent construction boom hitting the M&A market in 2019, buyers pushed assisted living values to the highest per-unit average ever recorded. The average price for assisted living communities rose to $248,400 per unit, or 33% higher than 2018’s average of $186,400 per unit and 12% higher than the previous high of $221,250 per unit in 2017, according the the Senior Care Acquisition Report. The median price per unit also reached a new high of $233,183 per unit, or 54% higher than 2018’s median and 8% higher than 2017’s. So, what explains this significant jump? First, investor interest in seniors... Read More »
PDPM Pushes Up Skilled Nursing Values in 2019
Skilled nursing values rebounded in 2019 to a near-record high of $93,000 per bed. That is still shy of the highest average value ever recorded ($99,200 per bed in 2016), when a number of high-quality, high-Medicare/private pay census transitional care facilities sold. But it was still a very strong year. Most in the industry never fathomed that average would ever approach $100,000 per bed, but it is true that excluding certain high-barrier-to-entry markets, traditional long-term care facilities with majority-Medicaid censuses should never really reach that value. The 2019 average was 20% higher than the $77,500 per bed average in 2018, likely driven by a lot of optimism surrounding the... Read More »
Values Surge Despite Persistent Worries
The 25th Edition of The Senior Care Acquisition Report is almost ready, but get your sneak preview and analysis in our upcoming webcast. We are diligently working on the 2020 edition of the Senior Care Acquisition Report, which we hope to have ready for publication by the end of the month. It will be the 25th edition of this market-leading report, and it has valuable M&A statistics that you will not find anywhere else, including trends over multi-year periods. Well, that is not exactly true. Next week we will be releasing some of those statistics in our annual webcast on the state of the seniors housing and care M&A market. Our panel will include brokers from Cushman &... Read More »
2019 Sets Senior Care M&A Record
What a year it was. We have now recorded 447 publicly announced seniors housing and care transactions in 2019, which is not only a record, but is also still just a preliminary number. Coming off of another record-breaking year in 2018, with 430 deals, the industry has amazingly surpassed that level of activity, by a whopping 5%. That’s what a lot of cheap capital can do. A busy fourth quarter pushed the sector to that unprecedented total, with 110 deals announced. As has historically been the case, private senior care providers made up the majority of buyers, accounting for nearly 50% of all Q4 acquisitions. REITs and real estate investment... Read More »Schedule a demo
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