National Health Investors Sees Improvements
National Health Investors turned in a mixed second quarter but appears to see more tailwinds than headwinds as it approaches 2024. They are not out of the woods with some of their providers yet, and deferrals are still a bit of a problem, but census levels are rising, margins are increasing and they are seeing some coverage ratios increasing. Investors, however, focused on a slight decrease in earnings guidance for the rest of the year and rent deferrals, sending the share price down by 6.4% after the release. The REIT’s small SHOP portfolio (15 properties) posted a nice $200,000 increase in NOI from the first quarter to $2.1 million. The operating margin increased by 170 basis points from... Read More »
SLIB Arranges Two Southeast Deals
Two Senior Living Investment Brokerage teams sold a couple of senior care facilities in the Southeast. Jeff Binder and Nick Cacciabando first represented a local owner/operator in their exit from the skilled nursing industry by selling their 130-bed facility in Hollister, Missouri, near Branson. The facility was built in 1984 on top of a hill and offers views of Lake Taneycomo. It maintained consistent revenue and occupancy throughout the last three years, most recently (in 2022) generating about $6.45 million of revenue, with an 8% margin and 75% occupancy. Emerging from multiple offers, the eventual buyer was a Missouri-based owner/operator of skilled nursing facilities with one of... Read More »
Grandbridge Completes REIT’s Non-Core Portfolio Disposition
Grandbridge was brought on to sell three older seniors housing communities in Florida that were distressed: The Grande, Balmoral and Forest Oaks. The Grande is a 144-unit community in Brooksville with independent living, assisted living and memory care services, and Balmoral is a 125-unit AL/MC community in Lake Placid. Forest Oaks is an 80-unit AL/MC community in Spring Hill. The Grande and Balmoral sold in June to TJM Properties, a regional Florida-based owner/operator. In a separate transaction in August, Forest Oaks sold to a Florida-based buyer that was not disclosed. A national REIT sold the communities, and this sale completed its disposition of a portfolio that consisted of... Read More »
Ziegler Prices Ohio Living Bonds
Ziegler announced that it priced Ohio Living’s Series 2023 bonds to be used to refund existing bank debt, terminate an interest swap agreement, fund a debt service reserve fund and fund approximately $3 million of capital expenditures across the organization’s portfolio. The not-for-profit owns and operates 12 communities throughout Ohio, making it the second largest not-for-profit provider in the state. The bonds consist of tax-exempt fixed interest rate serial and term bonds with an 18-year final maturity. They feature a three-year interest only period with annual principal amortization starting in 2026. Ohio Living decided to utilize fixed interest rate bonds to refund a portion of its... Read More »
NIC’s Brian Jurutka Lands at IMA Financial Group
The former President and CEO of NIC, Brian Jurutka, will be taking his seniors housing knowledge and talents to IMA Financial Group, a Denver-based insurance brokerage firm specializing in risk management, insurance, wholesale brokerage and wealth management. IMA is employee owned with more than 2,000 associates across the United States. Jurutka has joined as Vice President of seniors housing with the mandate to grow IMA’s presence in seniors housing. His rolodex will certainly help him with that task. We enjoyed working with him over the years when he was CEO of NIC and wish him continued success in our industry. Read More »
Foundry Commercial Acquires White Springs Senior Living
White Springs Senior Living, a 90-unit assisted living/memory care community built in 2020 in Warrenton, Virginia, was acquired by Foundry Commercial, marking Foundry’s 30th senior living community purchased since its establishment in 2020. Spring Arbor Senior Living, Foundry’s in-house seniors housing operating company, will manage the community going forward. White Springs Senior Living is the newest community in the operator’s portfolio. Acquisition financing was arranged by Capital Funding Group, but no other details were disclosed. Read More »
Evans Senior Investments Sells Colorado SNF
Evans Senior Investments was brought on by an independent owner/operator to arrange the sale of a skilled nursing facility that was built in 1968 and is in Fort Collins, Colorado. The seller owned and operated the facility for about 20 years, with it as their only SNF. Like so many other independent owner/operators, they were impacted by the difficulties of today’s operating environment as well as a lack of economies of scale. Making the decision to exit the long-term care industry, the owner/operator divested. There was a competitive marketing process, and at the time of marketing, occupancy was 68%. The facility was generating over $7.5 million in annual revenue, with a loss of over... Read More »
Brookdale Senior Living Projects Growth
Brookdale Senior Living released its second quarter 2023 earnings and seemed to gush with optimism. But remember the old saying, under promise and over perform. While there was some positive news in the quarter, they still have a long way to go. The first big news was that Adjusted EBITDA increased by 60.5% over the year-ago-quarter to $81.4 million. The bad news was that this was an 8% decline from the first quarter when it was $88.6 million. Revenues increased year over year by 10.9% while facility operating expenses increased by only 3.4%. In this inflationary environment that is quite good. The company is now cash flow positive after lease and interest expense, but before capex. Other... Read More »
60 Seconds with Swett: The Long, Slow Brookdale Recovery
Brookdale Senior Living came out with its Q2 earnings, and the occupancy results revealed just how prolonged the post-pandemic recovery has been for seniors housing and care, making many early predictions of a swift return to pre-pandemic census sound more and more ridiculous in hindsight. The good news is that Brookdale reported its highest month-end occupancy since before the pandemic, at 78.5%, up 30 basis points from the previous month and up just 10 basis points from the previous high recorded in September of last year. The bad news is the fact that Brookdale has taken this long to get back to last fall’s level of occupancy. To us, that is not “progress” in the larger goal of getting... Read More »
Ventas SHOP Improves
Ventas (NYSE: VTR) is the latest REIT to report second quarter earnings, and while performance is improving, it is not improving fast enough for some investors. Its seniors housing portfolio, while still showing improvements, lagged behind Welltower’s, and investors sent the shares down by 6.5% in early trading. Total seniors housing occupancy in its SHOP portfolio of 568 communities decreased by 30 basis points in the quarter, year over year, and declined by 20 basis points sequentially. On a same-community basis, occupancy increased by a small 10 basis points year over year, but declined by 20 basis points sequentially. Yes, the first and second quarters are usually not good for... Read More »Schedule a demo
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