• National Health Investors Issues Another Update

    National Health Investors is continuing its steady census progress, but the rent deferrals for Bickford Senior Living just will not end. The silver lining is that the deferral amounts are decreasing, from $3 million in both March and April of this year and $2 million in June. Now, the two parties have agreed to $1.5 million in rent deferrals per... Read More »
  • Another Family Owner/Operator Exits the Industry

    As Covid-19 has led to overall decreases in senior housing occupancy levels, Sherer Management joined several of its peers by closing down its multigenerational family business with the sale of its last two CCRCs in Iowa.  These properties include a total of 188 beds at Rose Vista in Woodbine and Longview Home in Missouri Valley.... Read More »
  • HJ Sims Refinances Michigan Provider

    It took a couple of tries, but HJ Sims arranged $41.9 million in financing for Sunset Retirement Communities, a multi-campus, not-for-profit senior living provider in Michigan. The company has grown its holdings over the past decade, starting development on its Jenison campus in 2009 and completing it in 2015. Then, after completing a market... Read More »
  • Recent Senior Care M&A Deals, Week Ending June 18, 2021

    Senior care M&A is soaring back this month across all sectors. Check out our recent M&A deal chart. Long-Term Care   AcquirerTargetPrice Beacon Health10 skilled nursing facilities in Iowa$24.2 million Regional operator/private capital providerRose Vista in Woodbine and Longview Home in Missouri ValleyN/A Ciena HealthcareLincoln... Read More »
  • Drinking the Kool-Aid in Washington (State), Again

    The people of the state of Washington are getting closer to having to make a decision about a new payroll tax to fund a “long-term” care benefit, that is anything but long term. The 58-cent tax withholding for every $100 of salary and bonus may not seem like much, but the benefit is not much either.  This reminds us (sort of) of the Class... Read More »
Senior Care M&A Market Remains at the Bottom

Senior Care M&A Market Remains at the Bottom

It appears we have hit the bottom of the seniors housing and care M&A market. For the second month in a row, we have recorded 18 publicly announced transactions in July, according to our database Deal Search Online. That is less than half of the monthly average in 2019 of 37.5 deals, and when taking into account the deals that actually closed in July (as opposed to publicly disclosed), activity was likely even lower. And from what we hear on the ground, conditions for dealmaking are not improving as quickly as was maybe thought back in May. And certainly not quick enough for the parties involved in closing the deals, we’re sure.  Just over half of the deals were for... Read More »
Average Independent Living Values Slide Significantly

Average Independent Living Values Slide Significantly

Some have argued that the independent living market will fare better than assisted living or skilled nursing in the immediate aftermath of COVID-19. This is easy to see, given independent living’s longer average length of stay, lower expenses and younger, healthier resident population. Long-term may be a different story, as we brought up in the June edition of The SeniorCare Investor.   But interestingly, in the trailing-12 months ended June 30th, the IL sector recorded the largest drop in values from 2019 compared with the other senior care sectors. The average price per unit fell 16.5% from $233,600 in 2019 to $194,900 in the last four quarters, according to The Senior Care Acquisition... Read More »
Skilled Nursing Values Drop In Last Four Quarters

Skilled Nursing Values Drop In Last Four Quarters

It still may be too early to tell, but according to our rolling-four quarter M&A statistics, it appears that skilled nursing values have started their descent in light of the COVID-19 pandemic. We say it may be too early simply because of how few transactions have been negotiated and closed since the onset of the virus, and we base our statistics on closed transactions, not just announced ones. The rolling-four quarter average also still consists of three quarters of prices that were not affected by the pandemic and that represent a larger share of the past 12 months of deals than normal because of the dearth of deals in Q2:2020.   Nevertheless, the average price... Read More »
Skilled Nursing Values Drop In Last Four Quarters

Second Quarter Healthcare M&A Drops

The decline in second quarter healthcare M&A probably won’t surprise many of our readers. The second quarter was the first full quarter of healthcare M&A in the shadow of the COVID-19 pandemic, and deal making took a hit as a result, as shown in results from our Deal Search Online database. Compared with Q1:20, Q2:20 dropped 20%, with 322 transactions on the books. Compared with Q2:19 (486 transactions), deal volume in Q2:20 declined even further at 34%.   Source: Health Care M&A, July 2020 Long-Term Care and Physician Medical Groups were among the hardest hit sectors, declining 40% and 50% in activity compared with Q1:20, respectively. Year-over-year, the difference... Read More »
Average Seniors Housing Occupancy Falls To Record-Low

Average Seniors Housing Occupancy Falls To Record-Low

The latest occupancy figures are out from NIC, and we suppose it could have been worse. Seniors housing communities reported that their census dropped on average by 280 basis points in the second quarter of 2020, from 87.7% to 84.5%. That is the lowest level ever recorded since NIC started reporting this data 14 years ago. Separating the market out, assisted living communities experienced a steeper decline, from 85.3% to 82.1% during the quarter, while independent living, which was in better health as a sector going into the pandemic, fell 240 basis points to 87.4%. Given the longer lengths of stay and the younger, healthier residents in independent living, that makes sense. Being a more... Read More »
One Small Provider Tackles The Coronavirus, And Performs

One Small Provider Tackles The Coronavirus, And Performs

As we all know by now, the coronavirus has been impacting providers very differently. Some not-for-profits have been spared, while others have suffered greatly. The very large national providers have seen surges in positive cases and deaths in some of their buildings, while other buildings they operate have been completely spared. Was senior management doing something different in the spared buildings? Probably not, but often times it can be the local management team, and just as often with this pandemic, it can just be a matter of luck.  Small providers, especially those with hands-on senior management, seem to have fared reasonably well from conversations we have had. Were they in... Read More »