Early Signs of COVID-19 In Several REIT Earnings Reports
Several publicly traded seniors housing and care companies released their first earnings reports after the COVID-19 crisis, and while most of the results showed signs of the virus’ effect, the worst is most likely yet to come. As a consequence of that, each company pulled their 2020 guidance, but no surprise there. LTC Properties reported on May 4th, and there were some results unfortunately typical for this time. Private pay occupancy fell from 86% at December 31 to 83% by March 31 and 80% on April 23rd. For skilled nursing, average monthly occupancy for December 2019, March 2020 and April to-date respectively was 79%, 78% and 75%. That drop from March to April is roughly in line... Read More »
Brookdale Senior Living Reports
Brookdale Senior Living reported first quarter earnings and operating results that, in some respects, were better than some investors may have expected. The problem is that everyone is expecting the worst as COVID-19 deaths keep on increasing. The reality, however, is that this pandemic really had little or no impact on the first two months of the quarter for operators. It was the last few weeks of the quarter, and obviously, the entire month of April, that started to do the damage. Management reported that fewer than 1% of its residents had tested positive for the coronavirus, so that means that there are probably many buildings that are virus free, and we assume they are marketed as... Read More »
Monticello Closes Refinance for Kansas SNF Portfolio
MONTICELLOAM, LLC and its affiliates provided first lien debt to an experienced owner/operator for the acquisition of a couple of senior care facilities and the refinance of two others. All located in Kansas, the facilities total 282 beds. The acquisition included a skilled nursing facility and one skilled nursing/inpatient rehab facility, averaging around 45 years in age and combining for 156 beds in northeast Kansas. In the end, the borrower obtained $15.5 million in debt, amounting to about $55,000 per bed. With the current acquisition, and others funded by Monticello in 2019, that brings the owner’s portfolio to 945 total licensed beds. Read More »
HHC Finance Impresses & Lerner Will Chair Englewood Health Boards
Housing & Healthcare Finance impressed in the last week of April, closing $117 million in HUD loan modifications for nine skilled nursing facilities in Illinois, Massachusetts and Pennsylvania. That is one area in the financing world that seems to have not slowed down as a result of COVID-19. That still took HHC Finance to react quickly to improving capital market conditions to lower their clients’ loan rates with almost no out-of-pocket expenses for them. The facilities receiving the rate modifications totaled 1,238 beds. The good news kept on coming for HHC Finance, as Richard Lerner, Co-Owner and Executive Vice Chairman at the firm, was appointed Board Chairman at Englewood Health... Read More »
PGIM Finances Virginia Community Through Fannie Mae
After closing a scattered site HUD loan for a portfolio of three assisted living communities in Maryland, PGIM Real Estate stuck with the agency financings by closing a $19 million Fannie Mae refinance of a senior living community in Hardy, Virginia (Roanoke MSA). Built in 2009 and recently expanded, the 102-unit community has independent living, assisted living and memory care services along with a host of amenities, including membership to the nearby Carillon Wellness at West Lake, a wellness center with an indoor pool, group exercise classes and a gym. The expansion featured 37 new units and was overseen by the operator, Runk & Pratt Senior Living Communities. Chris Fenton led the... Read More »
Amnesty For Senior Care Providers
There has been a push for providing amnesty to senior care providers for COVID-19 lawsuits, and it makes sense . As you know, there has been a big push for states, or the federal government, to offer amnesty to senior care providers from lawsuits related to COVID-19 deaths, other than for cases of egregious neglect. Families and trial attorneys don’t want to hear anything of it. The reality is, suing hundreds of providers will accomplish very little other than lining the pockets of some lawyers and providing some financial comfort to family members. The reality is that it will not be easy to prove “neglect.” As horrible as some of the stories in skilled nursing facilities have been as... Read More »
Cushman & Wakefield Arranges Sentio IL Sale
Cushman & Wakefield’s Senior Housing Capital Markets team announced an independent living sale, the first for some time in this sector. Representing an affiliate of Sentio Investments, the team of Richard Swartz, Jay Wagner, Tim Hosmer, Chris Remeika and Jack Griffin sold a 150-unit IL community located in Stuart, Florida. Built in 1986 near both the waterfront and downtown, the community recently received an extensive, multi-million-dollar renovation that included work on resident units and common areas. Arrow Senior Living was the manager and will stay on in that role for the new owner, an affiliate of Waypoint Real Estate Investments. Waypoint paid $22.2 million, or $148,000 per... Read More »
Scribner Capital Debuts
Fundamental Advisors LP has just announced the formation of a strategic partnership with Scribner Capital, LLC to deploy stable capital to the seniors housing and care sector, especially given the unstable times we are in right now. Fundamental is a leading alternative asset manager that has invested in a variety of assets, including seniors housing, most recently exiting its highly successful investment in the CCRC known as The Clare in downtown Chicago. Scribner Capital was recently formed by James Scribner to provide capital to owners, operators and developers of seniors housing and care assets. Scribner has focused on providing capital solutions in this... Read More »
Capital Funding Group Finances Illinois SNF Acquisition
Capital Funding Group announced its involvement in an acquisition financing supporting the purchase of a skilled nursing facility in Pekin, Illinois that closed earlier in April (that we covered in last month’s issue of The SeniorCare Investor. Built in 1964, the facility was previously owned by a California-based individual who had inherited the day-to-day operations from her late husband. Managing the facility from California proved to be too much for the seller, who decided to retire. Occupancy was 62% at the time, but with a strong 57% quality mix, 52% of the census coming from private pay. However, it was generating a loss of about $200,000 on $5.24 million of revenues. ... Read More »
HJ Sims Expands Its Investment Banking Team
HJ Sims announced a major expansion to its Investment Banking Team, adding two senior bankers and opening new offices in the Midwest and on the West Coast. Lynn Daly joined the firm as Executive Vice President in the new Chicago location, bringing over 30 years of experience working with not-for-profit organizations in financing. Previously, she was acting head of Senior Living Investment Banking at BB&T Capital Markets, and also spearheaded the Catholic Initiative within senior living investment banking at Ziegler. Brady Johnson also joined the HJ Sims team as Senior Vice President in the new West Coast office in Orange County, California. Previously at Hunt Real Estate Capital,... Read More »Schedule a demo
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