Skilled Nursing Cap Rates Stable after Record Rise in Price
We are less than a week away from our webinar “Seniors Housing M&A: the Numbers, the Deals and the 2017 Forecast,” where we discuss the results of our soon-to-be-released Senior Care Acquisition Report. Prices have risen to new heights in skilled nursing, nearly surpassing $100,000 per bed at $99,200 per bed. But what happened to skilled nursing cap rates, which most buyers prize far more as a valuation tool than price per bed? In the last couple of years, it has remained remarkably stable at 12.2% (identical to its 2015 level), with just a 20 basis point variance over the past three years. Although not reaching the record-low from the last bull market (12.1% in 2007), skilled nursing... Read More »
Values in the Seniors Housing and Care M&A Market Jump
For the four quarters ended September 30, average prices in the independent living market have increased, as have assisted living prices and skilled nursing prices. The seniors housing and care M&A market has seen less activity this year than in recent years, but that doesn’t mean buyers are not paying up for the assets they want. The best example is in the independent living market, where the average price paid in the four quarters ended September 30 was $234,000 per unit, or 21% higher than in calendar year 2015. The average cap rate remained steady at 7.0%. Assisted living prices have risen as well, jumping a smaller 5% for the past four quarters compared with 2015 to an average... Read More »
And the vote is in…
On October 13, our editor Steve Monroe moderated a webinar called “Skilled Nursing: Buying, Selling & Valuing,” with panelists Ben Atkins, Chairman of Traditions Senior Management, Charles Bissell, Executive Director of Integra Realty Resources, Ben Firestone, Senior Managing Director & Founding Partner of Blueprint Healthcare Real Estate Advisors, and Stephen Graham, SVP/Director of Post-Acute Acquisition & Development of MedEquities Realty Trust. During the 90 minutes, we posed two poll questions to our listeners and got some interesting results. First, in response to “Should high acuity, subacute SNFs sell with a higher or lower cap rate than more traditional SNFs?,” 55% of... Read More »NIC’s Third Quarter Numbers
NIC has come out with its third quarter occupancy, construction, asking rates and absorption stats, and we have to admit, we were disappointed with the numbers, especially on occupancy. Assisted living occupancy was basically flat with the second quarter amid hopes that there might be some acceleration. Independent living rose by just 10 basis points from the second quarter and was flat with a year ago. Asking rents were at their highest in years, but the numbers do not factor in the discounting which remains prevalent in many markets. Now, with Hurricane Matthew about to hit the southeast coast, and communities in Florida, Georgia and the Carolinas already beginning to evacuate residents... Read More »King Cash
When it comes to value, it all comes down to cash flow. For the fourth year in a row, according to the 21st Edition of The Senior Care Acquisition Report, there has been a record level of net operating income per bed purchased in the skilled nursing market. This has been the primary driver of the steady rise in the average price per bed since 2011. At the last market peak in 2007, the average NOI per bed sold was $6,700 and the average price per bed was $55,200. From 2007 until 2015, the average NOI grew to $9,600 per bed, for an increase of 43%, while the average price per bed increased to $85,900, representing a 55% increase. Most nursing facilities have been trying to increase their... Read More »Schedule a demo
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