Brookdale Occupancy Stumbles
Last month’s capital raise caused Brookdale Senior Living’s shares to plunge 40%, and now November occupancy is on a downward path as well. Perhaps that is why they needed the new capital, and we are just barely in the flu season. Weighted average occupancy dropped by 20 basis points in November to 77.0%, and month-end census fell by a smaller 10 basis points to 78.1%. But month-end occupancy has now dropped two months in a row. These are small declines, but symptomatic of problems. The company needs some help. It has been offered in terms of refreshing the Board, but to no avail…. Perhaps it is time that Brookdale finally hires Second Act Financial Services to help its customers move... Read More »
AlerisLife Sees Healthy Occupancy Boost in Q3
AlerisLife announced its third quarter earnings results, and the good news was that its owned portfolio including 20 senior living properties saw a 290-basis point increase in quarter-end occupancy from 75.5% in Q2:22 to 78.4% Q3:22. Its managed portfolio of 120 senior living properties increased a more modest 160 basis points to 77.0% over the same period, but both figures are healthy increases. Operators need to make the most of third quarter occupancy gains before winter weather and the flu season hamper their efforts, so this is good news for Aleris. But average occupancy still falls below 80%, so there is a long way to go. The company reported a net loss for the third quarter of 2022... Read More »
LTC Properties Reports Q3 Earnings
LTC Properties reported its third quarter earnings, and in addition to a healthy loan originations strategy, the company made some M&A moves in the quarter. Most notably, the REIT contributed $61.7 million into a joint venture that purchased three skilled nursing facilities located in Florida for $75.8 million, or $253,500 per bed, and leased the properties to affiliates of PruittHealth, Inc. under a 10-year master lease, with two five-year renewal options. Additionally, the master lease provided PruittHealth with a purchase option exercisable at the beginning of the fourth year through the end of the fifth year. LTC expects to receive net income from this investment of approximately... Read More »
Ensign Group Does It Again
Perhaps The Ensign Group should hire Britney Spears to perform at its Holiday party this year, and she can sing, “Oops, I did it again.” Because that is exactly what Ensign did. Another profitable quarter notched in its belt when too many skilled nursing operators continue to suffer, and it upped its earnings guidance for the rest of the year, the second time it has done so this year. The skeptic would claim they just give low guidance so they can keep on upping it. We don’t really care, as long as they keep on performing as they do. The “market,” however, was disappointed because Ensign missed consensus earnings per share estimates by one penny, so the share price dropped by 4%. Ho hum.... Read More »Health Care M&A On Pace for Record Year
Despite a volatile market, healthcare investors are undeterred. Inflation, significant labor issues and declining stock value are major headwinds that should be slowing down activity, but the past few quarters have shown the resilience of the healthcare M&A market. Nearly 1,800 healthcare deals were announced through the end of September, a steep increase from the 1,560 sales reported in the same period in 2021. This year will break records if activity continues at this pace. Investors and dealmakers announced 686 deals in the third quarter, representing a 5% drop from the 731 transactions reported in the second quarter. With all the headwinds hitting the industry, we expected a more... Read More »Schedule a demo
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