Omega Healthcare Reports, American Healthcare Prices IPO
There had been some nasty rumors in the market leading up to the release of Omega Healthcare Investors’ fourth quarter and year-end earnings release. Some people fretted that the situation had deteriorated with too many of their customers, which could force them to cut their dividend rate. You can’t believe everything you read, except on these pages. While there are still some tenant issues, the overall situation is improving. Because they are leases, the information comes with a three-month lag. For the 12 months ended September 30, 2023, occupancy was 79.1%, up from the previous quarter and up 290 basis points from the year-ago quarter. EBITDARM coverage was 1.63x in the third quarter,... Read More »
PE Firm Divests in Wisconsin
A regional owner/operator that was looking to expand its footprint was selected as the buyer of a seniors housing community in Pleasant Prairie, Wisconsin. Built in 2016, the community comprises 100 assisted living and memory care units. The seller was an undisclosed, East Coast-based private equity firm. Bradley Clousing, Ryan Saul and Jeff Binder of Senior Living Investment Brokerage handled the national, yet confidential, transaction. There were multiple offers from both regional and national buyers. No other details were disclosed. Read More »
Family-Owned PruittHealth Expands in Georgia
PruittHealth expanded its footprint after making a seniors housing acquisition in Atlanta, Georgia. Built in 1998, Brighton Gardens of Buckhead is an assisted living/memory care community with 75 units and 112 beds. It will be rebranded as PruittPlace – Buckhead, and the buyer intends on conducting renovations on the asset in the future. With the addition of this community, PruittHealth now operates 108 senior living communities and health care centers in five states. This transaction comes only several months after PruittHealth was selected as the buyer for Piedmont Healthcare Inc.’s skilled nursing portfolio that included Laurel Park, Piedmont Augusta Extended Care Kentwood... Read More »
TJM Acquires Two Florida AL/MC Communities
TJM Properties acquired two assisted living/memory care communities in Bradenton and Venice, Florida, from a private REIT that purchased the assets as part of a large portfolio. These were TJM’s sixth and seventh assets acquired in the past 12 months. The buyer intends to invest in cosmetic updates for both communities. The Brandenton community was built in 1989 and comprises 74,786 square feet across 7.62 acres. The Venice community was constructed in 1998 with 74,445 square feet on 4.06 acres. Together, the assets total 211 units. Bradley Clousing and Daniel Geraghty of Senior Living Investment Brokerage handled the transaction. No purchase price was disclosed. Read More »
Sonida Senior Living Readies for Next Phase
Don’t you love it when a plan finally comes together? Sonida Senior Living has been working diligently to streamline its capital structure, not to mention improving its census and margins. Yesterday they announced two major developments which should set the stage for future growth. First, they purchased $77.4 million of outstanding debt held by Protective Life for $40.2 million, or a 52% discount, across seven communities. We are not sure we have seen that large of a discount in the market, and perhaps news of this will light a fire under some other creditors. Part of the purchase price was funded by a $24.8 million expansion of Sonida’s existing term loan with Ally Bank. An additional $44... Read More »
60 Seconds with Swett: January M&A Activity Hits a Recent High
If many are hoping for a fundamental shift in the M&A market in 2024, either for more activity, larger deals or Class-A, stabilized properties hitting the market, then January may have offered a glimmer of hope. We recorded 61 publicly announced transactions across the seniors housing and care sectors, according to LevinPro LTC. That is the highest monthly tally since January 2022 when 64 deals were made public. Back then, for some perspective, the 10-year Treasury rate averaged 1.76% that month, as opposed to around 4.0% last month. And liquidity was vastly different, too. There are also always December closings in the January total, which goes by announcement date, but that is true... Read More »
The Ensign Group Rocks It Again
It is all about culture, and handing down responsibility, accountability, and providing financial incentives that makes The Ensign Group tick, and rock every quarter. It is also something some seniors housing providers can learn from. Some companies are doing it, but many founders and CEOs are still not ready to hand over the tools to succeed. The nursing home industry is difficult, but Ensign continues to outperform. Same-facility occupancy was up 240 basis points year over year, and it was up 40 basis points sequentially. The skilled mix increased by 110 basis points sequentially. Other nursing home operators only dream of this. In addition, Ensign’s 2024 earnings guidance is now 13%... Read More »
Owner/Operator Chooses Refinance over Sale
We have written numerous times of property owners not being tempted into the M&A market lately, due to values being below their expectations for their properties. One of those owners, a local operator in Michigan, decided to refinance its 150-unit independent living community after sale offers came in lower than they desired. Built by the same operator 15 years ago about 15 miles outside of Ann Arbor, the three-story community had experienced a census drop of over 20% since the start of the pandemic. That probably did not help its sale prospects. So, JD Stettin of Carnegie Capital arranged a refinance totaling $9 million from a syndicate of local credit unions. The loan came with a... Read More »
Highmark Assumes Management of Iowa Portfolio
Highmark Senior Living, a Hubbell Realty Co. affiliate that manages six communities with over 290 residents, has taken over management of a portfolio of Edencrest senior living communities spread throughout Iowa. The communities include Edencrest at Beaverdale (built in 2017), Edencrest at Green Meadows (2016), Edencrest at The Legacy (2018), Edencrest at Riverwoods (2014), Edencrest at Siena Hills (2017), Edencrest at Timberline (2023) and Edencrest at Tuscany (2021). Read More »
United Properties Expands in Minnesota
United Properties acquired a senior living community in Champlin, Minnesota, as its third senior community in the immediate area. United now owns/operates seven Amira Choice communities in the Twin Cities and two in Florida. It also owns three Amira active adult communities in the Twin Cities and intends to expand its portfolio in the coming years. Built in 2002, Champlin Shores comprises independent living, assisted living and memory care units. United intends to update the community in the next three years and rebrand it as Amira Choice Champlin. The selected operator is Ebenezer Senior Living. Blackstone and Brookdale Senior Living purchased the asset in 2017 from Healthpeak... Read More »Schedule a demo
Gain access to the best healthcare and long-term care investment intelligence, data, and analysis.
