For Ventas, Welltower, Second Quarter Could Have Been Worse
Second quarter earnings reports are not done yet, but the majority of the companies and REITs have reported. We were obviously not expecting a good quarter, but given the trend lines from March through June, the results could have been worse. In fact, for many companies it appears as if the worst is behind them. Or maybe it is better said that the bad news is getting less so. Let’s just say, the fat lady has not completed her song yet. Before we get into some of the specifics of the two largest REITs, which happen to have the largest seniors housing operating portfolios, we do have some observations from the companies reporting. First, it appears that labor costs have declined for... Read More »
The Ensign Group Hits Record, Raises Guidance
We didn’t expect much positive news from the plethora of earnings announcements coming out these two weeks, but The Ensign Group defied expectations by achieving its highest adjusted earnings per share in its history of $0.78, an increase of 100% over the second quarter of 2019 and slightly above the previous record-setting Q1:20. The operator also raised its 2020 annual earnings guidance to $3.00-$3.10 per diluted share, up from the previous guidance of $2.50-$2.58. The news sent its share price soaring from $48.68 at close on August 5 to $57.99 on heavy volume on August 6 and even higher to $58.32 on August 7. Ensign also announced that it has returned all of the PPP... Read More »
Long Bankruptcy Process Ends with CCRC Sale in Tampa
A years-long bankruptcy process for a large CCRC in Tampa, Florida has finally concluded with a new not-for-profit owner stepping in, BRP Senior Housing Management (an affiliate of Big Rock Partners) now operating it and Ziegler closing a nearly $70 million bond financing to fund the deal. Unfortunately, the property has a long and complicated history under its previous ownership. Complicated, to say the least. Originally built in 1985 with 445 independent living units, 72 assisted living units and 240 skilled nursing beds, University Village was acquired in 2000 by Westport Holdings Tampa, LP for $64.1 million, or around $85,000 per unit/bed. In... Read More »
Two Texas SNFs Acquired
Senior Living Properties, through its affiliate SLP Operations LLC, acquired two skilled nursing facilities in Texas, bringing its total portfolio in the Lone Star State to 41 facilities. The acquisition included a 111-bed facility in West Orange (on the border with Louisiana) and a 107-bed facility in Texas City, about 40 miles southeast of Houston on Galveston Bay. Both facilities offer skilled nursing, physical therapy, post-acute care, long-term care, rehabilitation services, respite care and memory care. Just last month, SLP Operations acquired two other Texas facilities In Mineola and Johnson City. Matthew Alley of Senior Living Investment Brokerage handled the... Read More »
Recent Senior Care M&A Deals, Week Ending August 7, 2020
Check out our recent senior care M&A acquisitions! Long-Term Care AcquirerTargetPrice The Ensign GroupTempe Post Acute & Desert Marigold Senior Living of Tempe N/A Tampa Life Plan Village, Inc.University VillageApprox. $51 million California-based owner/operatorRegency Place Senior LivingN/A Not disclosedEgida Hogar San Antonio... Read More »
Capital Senior Living Returns 18 Properties to Fannie Mae
It’s been quite a week of earnings announcements from the publicly traded senior care companies, with Healthpeak Properties, Welltower, CareTrust REIT, Sabra Health Care REIT, Omega Healthcare Investors, Five Star Senior Living, Diversified Healthcare Trust and The Ensign Group all reporting. Capital Senior Living Corporation also came out with its second quarter results, and surprised some by revealing it was turning 18 properties in forbearance with Fannie Mae back to the agency lender. We have never heard of a company basically handing the keys over to Fannie Mae for that many communities. It is safe to say we are in unchartered territory that does not fail to surprise us, to say the... Read More »
Blueprint Sells in Sacramento
Humair Sabir and Jacob Gehl of Blueprint Healthcare Real Estate Advisors worked on behalf of a private ownership group in its sale of a senior living community in Sacramento, California. Originally built in 1997, the community features a mix of 72 independent living, assisted living and memory care units in three integrated buildings. It also has the advantage of being in a desirable area of Sacramento. The seller, Solstar Investments, bought the community from a local investor group in 2015 for $6.85 million, or $95,100 per unit, at a roughly 6.1% cap rate. At the time, occupancy had dropped to just 80% (not that bad these days), and the operating margin could have been improved... Read More »
Cushman & Wakefield Close Nine-Property SNF Sale
Cushman & Wakefield handled the sale of a nine-property skilled nursing portfolio in Ohio, working on behalf of the private owner who was looking to shrink their presence in the business. Featuring a total of 884 beds, the portfolio was apparently operating around stabilized levels. The buyer was undisclosed but was described as a regional operator with a significant presence in the state. Terms of the deal were also not disclosed but involved both cash and the assumption of debt. Richard Swartz, Jay Wagner and Dan Baker of Cushman & Wakefield handled the transaction. Read More »
Love Funding Closes Puerto Rico Financing
Leonard Lucas of Love Funding headed down to sunny Guayama, Puerto Rico to close a HUD financing for the acquisition of a 60-unit age-restricted, Section 8 apartment complex. Featuring two, two-story buildings, the community is entirely covered under a new project-based Section 8 HAP contract secured by the buyer that runs for a period of 20 years. To acquire the community, the borrower obtained a $3.14 million loan, which came with a lower mortgage insurance premium of 0.25%. The borrower was also able to realize additional savings through HUD’s reduced application fee incentive for projects located in a Qualified Opportunity Zone. Read More »
HealthPeak, Welltower, Ventas and Others Report This Week
In the next 48 hours, six companies will report second quarter earnings. While it won’t be pretty, you have to think long term. Earnings season is here, and I am afraid it will not be very pretty. Unfortunately, it has not been pretty for a while, but we can always hope. Six companies will be reporting second quarter earnings over the next 48 hours. Everyone is trying to put as good a face on it as they can, especially since we all know that at some point in the future, it will get better. The questions are when, which sectors will start improving first, and how much better will it get? The thing I have a hard time reconciling is that there is still plenty of equity capital out... Read More »Schedule a demo
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