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 »
REIT Divests in Florida
A Florida-based owner/operator bought an older assisted living community located about 50 miles north of Tampa, in a deal handled by Bradley Clousing and Daniel Geraghty of Senior Living Investment Brokerage. Originally built as a hotel in 1925 and converted to assisted living in 1984, Noble Senior Living at Brooksville has 85 units of AL and memory care. Since its conversion, it has received significant capital upgrades to both the interior and exterior of the asset. Its publicly traded REIT seller was exiting the last remaining assets in this portfolio, prompting the sale. The in-state buyer has existing locations in the region, so the asset fits well into its geographic portfolio.... Read More »
Shazam: Welltower Outperforms in Q3
We figured that Welltower’s seniors housing operating portfolio (SHOP) would continue to improve after the second quarter, but let’s just say the improvement was better than we thought it would be, and probably better than most everyone else thought as well. On a same-community basis, SHOP occupancy surged by 120 basis points sequentially to 81.7%, and by 220 basis points year over year. The always-strong third quarter was good to them. Occupancy, however, was not the highlight. Same-community SHOP revenues increased year over year by 9.8% while operating expenses increased by just 5.1%. It makes sense that the spread between RevPOR and ExPOR should widen as census grows above 80%. This... Read More »
60 Seconds with Swett: Gloom Prevails at the NIC Conference
As always, it was great to see so many of our industry friends, and plenty of new faces, at the NIC Conference in Chicago last week. And typical of most conferences, many asked us what we thought the mood of the conference was. We wondered if it would be at all better than the grim 2022 Fall conference when the capital markets had fundamentally shifted for the worse. Unfortunately, we cannot say it was better than that. With the 10-year Treasury rate touching 5% at the start of the conference and consistent signals from the Fed that interest rates would be “higher, for longer,” any hope for an improving capital markets environment unleashing a flood of financings and M&A (at higher... Read More »
LTC Properties Comes Out with Q3 Earnings
LTC Properties came out with its third quarter earnings on October 26, and the REIT’s loan origination program, which grew at a time when making acquisitions did not make as much financial sense, is continuing to pay off. Q3 net income was boosted by higher interest income from a variety of sources. There was financing receivables due to the acquisition of 11 assisted living/memory care communities in the first quarter of 2023 and three skilled nursing facilities in the third quarter of 2022. Higher interest income also came from mortgage loan originations in Q1:23 and a $17.0 million mezzanine loan origination in Q3:23. An affiliate of Galerie Living received that loan to recapitalize and... Read More »
KeyBank Finances New Construction in Cleveland
A new affordable senior apartment community is being built in Cleveland, Ohio, thanks to $11.3 million in 9% tax credit equity provided by KeyBank Community Development Lending and Investment (CDLI). Garrett Square Apartments will include 49 units of affordable seniors housing in the Glenville neighborhood of Cleveland. The financing package comprised a $9 million construction loan and a $2.3 million permanent loan. Additional permanent financing sources include secondary soft loans totaling $1.7 million provided through the City of Cleveland’s American Rescue Plan Act, $900,000 from City Home, and $450,00 from the County ERA fund. The site is currently occupied with a parking lot and... Read More »
Ensign’s Q3:23 Earnings Are Released
The Ensign Group came out with its third quarter earnings on October 25, and the results were mostly positive. GAAP diluted earnings per share rose 12.1% over the previous third quarter to $1.11. However, that was off $0.01 compared with the second quarter. On an adjusted basis, EPS rose to $1.20 in Q3:23, up 15.4% from Q3:22 and up 3.4% from Q2:23. The company’s share price dropped by just 0.7% on a down day for the market. Adjusted EBITDAR also increased to $158.4 million for the third quarter, or $633.6 million on an annualized basis. Revenues soared from $770 million in Q3:22 to $940.8 million in Q3:23 on the back of higher reimbursement, new acquisitions and increased census.... Read More »
All Charges Against Silverado Dropped
In a case that never should have been charged, by an overzealous district attorney in California (of course), all charges against Silverado Memory Care, its employees and its CEO, Loren Shook, have been dismissed. The only thing we wonder is, what took them so long? Other than the fact that this never should have happened. Multiple felony counts of elder endangerment and of violations causing death, and this in the first few months of COVID, when even the CDC was clueless about the disease? This should have been dropped months ago, but we suppose it had to be played out. We hope that this will be a lesson to other, overzealous DAs who want to make a name for themselves, that they should... Read More »Schedule a demo
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