CareTrust REIT Steadies For The Future
While it may not have been CareTrust REIT’s best quarter, there do not seem to be many problems with its tenants. The REIT collected 97.5% of contractual rent, up from 96.7% in the previous quarter. It helps when The Ensign Group is your major tenant. Lease coverage ratios are important when most of your business is triple net leases. For CareTrust, it is the envy of the industry. For the 12 months ended June 30, 2023 (REITs and their leases are always three months behind in reporting), CareTrust’s top 10 tenants had a combined EBITDARM coverage ratio of 2.87x, up from 2.71x for the previous 12-month period. And this excludes any use of HHS Relief Funds. Within this group, Ensign was tops... Read More »
Sabra: The Manager Really Does Matter
There were a lot of moving parts during 2023 at Sabra Health Care REIT with regard to its former Enlivant portfolio, owned in a joint venture with private equity firm TPG. After defaulting on its Fannie Mae debt and basically handing the keys over to Fannie for a majority of its Enlivant assets, Sabra still owned 11 Enlivant-managed communities outside of its TPG joint venture. These properties were transitioned to Inspirit Senior Living on July 6. In just three months, census in the portfolio increased by more than 230 basis points. We can’t wait to see where it will be this time next year. This has been a common theme of sorts: a new manager is brought in for underperforming... Read More »
NHI’s Tenants Continue To Improve
As we are coming to the end of the third quarter earnings season, we apologize for sounding a bit like a broken record, but the fact of the matter is that the industry continues to claw its way out of the COVID pandemic pit. While it is taking longer than anyone wants, and longer than most people had expected, census and cash flow are increasing. The lack of new developments certainly has not hurt. Take National Health Investors as an example. Would CEO Eric Mendelsohn like to see more progress with his tenants? Sure, but the third quarter saw some of their providers post great increases in occupancy. Bickford’s same community results for 38 communities saw a 240-basis point increase in... Read More »
CFG Arranges Refinancing for an Arizona SNF
Capital Funding Group announced the closing of a $10.9 million HUD loan on behalf of a nationally recognized borrower. The loan supported the refinancing of an existing bridge loan, executed by CFG, into a HUD loan. The refinancing was secured by a 112-bed skilled nursing facility in Arizona. Tommy Dillon of CFG originated the transaction. This financing follows the company’s recent announcement of $22.4 million in bridge-to-HUD financing for the acquisition of three skilled nursing facilities in Georgia secured by 338 beds. Read More »
NY Active Adult Community Changes Hands
CBRE Capital Markets announced the sale and financing of an active adult community in Deer Park, New York. Jeff Dunne and Eric Apfel of the New York Metro Institutional Sales team, along with Aron Will, John Sweeny and Scott Bray of the CBRE Senior Housing team, handled this transaction. CBRE represented the seller, a joint venture between B2K Development, a Long Island-based real estate development group, and Harrison Street, one of the leading investment management firms that has a focus on alternative real assets. The team also procured the buyer, Fairfield Knolls at Deer Park Owner LLC, a real estate investment group based in Melville, NY. There was significant interest in the... Read More »
Publicly Traded REIT Divests in Florida
Blueprint was brought on by a publicly traded REIT to facilitate the sale of an assisted living community in Lakeland, Florida. At the time of marketing, the community’s performance was trending back upward following a decline in 2020 and 2021. It was built in 2001 and occupancy was around 85%. Blueprint marketed the deal as an opportunity for an incoming investor with regional expertise to capitalize on economies of scale and expand upon a Florida footprint. The ultimate buyer was a local owner/operator actively acquiring in Florida. Brooks Blackmon and Lauren Nagle handled this transaction, which closed within three months of executing the letter of intent, in all cash. Read More »
Omega Healthcare Still Investing
Omega Healthcare Investors, which is approximately 75% skilled nursing and 25% seniors housing, and the largest institutional owner of SNFs, reported a mixed third quarter. While, the financial performance exceeded management’s expectations with unanticipated rent collections from some operators that had been on a cash basis, as well as higher interest income than expected, there were also some problems that will have to be dealt with. First the problems. During the third quarter Omega sold seven SNFs that were leased to LaVie Care Centers for $84.4 million. In the third quarter, LaVie paid $7.4 million in rent, plus $2.5 million in October. But on November 1, Omega sold an additional 29... Read More »
Brookdale: The Magic of Increasing Rates and Census
So far, so good, with everyone’s third quarter earnings results. And that is the way it should be, since the third quarter has almost always been the best quarter, at least as far as occupancy is concerned. For Brookdale Senior Living, it was no different, with seven months in a row of increased occupancy. The question is, will that be enough? We have to admit (once again) that there are few voices as soothing as Brookdale’s CEO Cindy Baier when delivering quarterly updates, whether good, bad or ugly. But for the third quarter it was mostly good news. Call it steady as it goes, as most financial and operating metrics are still on the rise, except for sequential moveouts, which declined by... Read More »
Publicly Traded REIT Divests Two AL Communities
Blueprint was brought on by a publicly traded REIT in its divestment of two assisted living communities located in markets with little competition in Florida, Savannah Court of Bartow and Savannah Court of St. Cloud. Brooks Blackmon and Lauren Nagle of Blueprint handled this transaction Built in 2000, Savannah Court of Bartow is in Bartow and comprises 36 units. It will be rebranded as The Club at Bartow. Also built in 2000, Savannah Court of St. Cloud is in St. Cloud and consists of 36 units. It will be renamed The Club at St. Cloud. At the time of marketing, the communities were over 90% occupied and operating at ~13% and 32% margins in Bartow and St. Cloud, respectively. The buyer was a... Read More »
Shazam All Over Again For Welltower
Coming off its solid third quarter earnings, Welltower sold 17.5 million common shares yielding gross proceeds of $1.5 billion. The selling price was at a small discount to the market price. If the underwriters exercise their option, another 2.725 million shares could get sold. The underwriters were BofA Securities and Goldman Sachs. Proceeds will be used to fund previously announced acquisitions as well as for general corporate purposes. We have not seen an equity offering of this size for a healthcare REIT in many years. Shazam. Read More »Schedule a demo
Gain access to the best healthcare and long-term care investment intelligence, data, and analysis.
