Skilled Nursing Price Drops
When the average price per bed for skilled nursing facilities drops, the consistency in that drop is unparalleled. Here is something to ponder. We know that after a nice five-year run-up, the average price paid per bed in the skilled nursing market dropped by 18% last year, according to our new statistics. That was obviously a significant plunge, especially since the average had doubled in the previous five years. So, I decided to go back and see what happened in other years since 2000 when there was a drop. It turns out there were four years when there was a price drop of any significance. These included 2003, 2008, 2011 and 2017. What is weird is that the decline in each of those four... Read More »
Will New Records Be Set in 2018?
On Thursday, February 15, our Editor Steve Monroe moderated a 90-minute webinar titled “Will New Records Be Set? The Numbers, the Deals, the Stats on all Seniors Housing and Care M&A,” with a panel of experts to discuss the 2017 seniors housing and care M&A market, with pricing statistics from our upcoming Senior Care Acquisition Report, to be published next month. There were a few records set in 2017 (for details on those records, check out either the webinar or the Report), but with labor, occupancy, overdevelopment and interest rate headwinds facing the seniors housing and care industry, would that robust M&A market continue into 2018? That’s what our panel of experts,... Read More »
Assisted Living Prices Hit Record
Despite multiple headwinds, assisted living prices hit record levels in 2017, while skilled nursing facility prices slumped for the first time in six years. There is an interesting phenomenon going on right now in the seniors housing and care acquisition market. Both the skilled nursing sector and the private pay seniors housing side of the business are facing multiple headwinds. Yet, one side is seeing prices decline while the other keeps on going up, setting some new records on the way. Last year, after five straight years of rising prices, the average price per bed for skilled nursing facilities plunged by 18% to $81,350. Your first question might be, what took so long? The average cap... Read More »
Slowest Q4 For Senior Care M&A Since 2014
Despite a strong December, when we recorded 30 long-term care transactions, the fourth quarter of 2017 was slow by all recent standards. These are preliminary numbers and may be revised upward in the coming weeks, but with just 69 announced acquisitions, Q4:17 was the least active quarter in terms of number of transactions since Q2:14, when we recorded just 63 deal announcements. Compared to the previous years’ fourth quarters, 2017 fell short significantly, down from the 93 deals recorded in Q4:16 and from the 108 deals recorded in Q4:15 (the all-time high for a quarter). There were few high-priced deals, as well, with the largest of the quarter (Mainstreet’s $425 million acquisition of... 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 »Schedule a demo
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