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 »
Ventas Posts Solid Q3 Results
Welltower came out of the blocks first with its third quarter results, and it was quite impressive. The second largest healthcare REIT, Ventas, reported at the end of last week, and while the results were not quite as good as Welltower’s, it was close, and Ventas should be happy with the continued improvement. For Ventas, same-community occupancy in its SHOP portfolio increased sequentially by 30 basis points and year-over-year by 110 basis points to 83.6%, helped by its Canadian portfolio at 95%. Even though Welltower posted larger same-community sequential and year-over-year increases of 120 basis points and 220 basis points, respectively, its overall occupancy is lower at 81.7%. ... Read More »
Evans Executes A Lease-To-Purchase Deal
Evans Senior Investments secured a tenant for a portfolio of five skilled nursing facilities in Massachusetts on behalf of an institutional landlord. The portfolio features a total of 500 licensed beds at 76% occupancy. Prior to the pandemic, the portfolio generated stabilized revenue of $46 million at 90% occupancy, but now it is losing over $2 million in NOI. Therein lies the opportunity for the incoming operator, a regional group based on the East Coast, which agreed to a five-year lease with a purchase option. If they are successful, we imagine it would be a very attractive acquisition for them. Evans Senior Investments ran a competitive process yielding multiple offers.... Read More »
Ensign Adds to Texas Portfolio
The Ensign Group, Inc. acquired the real estate and operations of Champions Healthcare at Willowbrook, a healthcare campus consisting of a 98-bed skilled nursing facility and a 144-bed assisted living community in Houston, Texas. The real estate was acquired by a subsidiary of Standard Bearer Healthcare REIT, Inc., Ensign’s captive real estate company, and the acquisition was effective November 1, 2023. Keystone Care LLC, Ensign’s Texas-based subsidiary, will take over the operations. No purchase price was disclosed, but the acquisition brings Ensign’s growing portfolio to 297 healthcare operations, 27 of which also include senior living operations, across thirteen states. Ensign... Read More »
Meridian Closes $200 Million in Transaction Volume
Meridian Capital Group’s Senior Housing and Healthcare Platform, led by Ari Adlerstein and Josh Simpson, had an impressive October, closing $200 million in transaction volume. The team recently sold seven skilled nursing facilities totaling 844 beds in Massachusetts for $58.8 million, or $70,000 per bed, and arranged $45 million in financing from a commercial bank for the acquisition and the refinance of an eighth skilled nursing facility in Illinois comprising 53 beds. They also sold a 242-bed skilled nursing facility in Colorado for $28.4 million, or $117,400 per bed. Rounding out their recent activity, the team arranged $28 million from a finance company to refinance two... Read More »
Owner/Operator Grows through Lease-to-Purchase Deal
To grow in this expensive environment, some buyers are turning to lease-to-purchase deals. Andrew Montgomery of Montgomery Intermediary Group closed on such an agreement for a skilled nursing facility with 60 beds in Missouri. The seller was looking to focus on assets closer to home and slated this location for divestment. The buyer is a growing owner/operator that is expanding their footprint in the region and plans to acquire the community within 12 months. Owning a medical supplies company that services over 1,000 nursing homes, including his own, the buyer has targeted similar deals in the last year, identifying smaller towns that other groups tend to avoid due to their size. Buying in... Read More »
From Not-For-Profit to For-Profit
Jeffrey Vegh and Joe Schiff of Forest Healthcare Properties were brought on by a not-for-profit in their divestment of a skilled nursing facility with an assisted living component. The facility comprises 99 SNF beds and 28 AL units in Cincinnati, Ohio, and at the time of marketing occupancy was hovering around 80%. The building is on the older side, but it has been renovated since opening. However, it was not performing well. Navigating this tough capital markets environment, Vegh and Schiff secured a local buyer. The for-profit, Ohio-based operator with several locations in the area has the opportunity to make several changes on the expense side to bring the facility to breakeven. Read More »
Not-For-Profit CCRC Receives Financing
Ziegler successfully closed a bond financing for Shenandoah Valley Westminster-Canterbury, a Virginia not-for-profit organization that owns and operates a CCRC in Winchester. Set on 87 acres, the 40-year-old campus provides housing, health care, and other services to nearly 400 residents across 217 independent living units (164 apartments and 53 cottages), 48 assisted living units, 12 memory care units and 51 skilled nursing beds. The organization is currently completing an independent living expansion project, the first phase of which was financed by Ziegler in 2022 and will include 48 new IL villa apartments. The second phase of the project that is being financed with the new Series 2023... Read More »Schedule a demo
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