Big Sale by New Senior Investment Group
New Senior Investment Group announced it has entered into an agreement to sell its portfolio of 28 assisted living and memory care communities in 14 states with 2,840 units for $385 million, or $135,560 per unit. These are managed by six different operators. This group of communities has dragged down New Senior’s performance, as occupancy and cash flow has been decreasing over the past year. Overall occupancy for the assisted living and memory care portfolio is 78%, but nine of the communities (transition assets) had occupancy of just 68.7% in the third quarter with a cash NOI margin of just 0.5%. The other 19 had an average occupancy rate of 81.3% and a cash NOI margin of 21.5%. The... Read More »
The Ensign Group Strikes Again
Ensign the Energizer Bunny, our pet name for several years now for one of two publicly traded companies that continue to make a GAAP profit, quarter after quarter, did it again. And they did it during what could have been a disruptive third quarter when they spun out their senior living operations and home health and hospice business into The Pennant Group. Obviously, it was not disruptive. To sum up some of the key numbers, there was a 33% year-over-year quarterly increase in income from operations, plus a 36% increase in net income to $27.8 million. This is after rent, depreciation and interest, or in other words, the real thing. And, net income per share increased by 25% year over year.... Read More »
Sabra Health Care REIT Strengthens
Sabra Health Care REIT continues to defy the naysayers, posting a decent third quarter overall, with its skilled nursing portfolio holding the line and its seniors housing portfolio growing revenues, cash net operating income and cash operating margin. Investors sent the shares to a new 52-week high, 56% above its 52-week low, and the forward yield of 7.3% is the lowest it has been in a while. Sabra’s skilled nursing triple-net leased occupancy remained stable at 82.4%, and the EBITDAR coverage remained at 1.24x from the second quarter to the third. While we like to see at least a 1.4x lease coverage, if not higher, the coverage appears to have bottomed out. The seniors housing leased... Read More »
Recent Senior Care M&A Deals, Week Ending November 1, 2019
Check out our recent senior care M&A deals! Long-Term Care AcquirerTargetPrice Welltower Inc.6 senior living communities$297 million Private equity firmOrange County senior living community$95.5 million Welltower Inc.2 assisted living communities im ID and CA$39 million Sovereign wealth fundStake in 19 Brookdale senior living communities$367.35 million Omega Healthcare Investors, Inc.Stake in U.K seniors housing assets$90... Read More »
HCP, or Healthpeak Properties, Continues Brookdale Restructure
As if a new name wasn’t enough news. First, along with its third quarter earnings results, HCP, Inc. announced that it is changing its name to Healthpeak Properties, Inc. and will trade on the New York Stock Exchange under the new name and ticker symbol “PEAK” on November 5. But then, the REIT announced a couple of large transactions, including the sale of a 46.5% interest in a portfolio of 19 Brookdale Senior Living-operated properties, an amended acquisition of 13 CCRCs from Brookdale and the divestment of the remaining interest in its United Kingdom holdings. Exits from the U.K. are all the rage these days. Starting with the Brookdale sale, HCP, sorry, Healthpeak agreed to form a new... Read More »
Capital Health Group and AEW Capital Management Sell Florida Communities
We just learned of the sellers in Sino-Ocean Capital and Meridian Senior Living’s acquisition of two seniors housing communities in Florida. After funding the land acquisition and development of the two communities, Capital Health Group and AEW Capital Management are selling the properties for an undisclosed amount. The deal involved a 106-unit community in Fort Lauderdale built in 2016 and a 132-unit community in Boca Raton just opened last year, both operating under the “Symphony” brand. They were both well occupied. The buyers engaged Capital One to serve as administrative agent for a large multi-purpose financing package. The $108.9 million loan will be used to... Read More »
Greystone Closes Two Freddie Mac Financings
Greystone ended October with a couple of varied transactions. First, Cary Tremper facilitated a Freddie Mac $43.98 million loan to support the acquisition of a 207-unit senior living community in Daly City, California (San Francisco MSA). The loan was originated on behalf of the borrower, Senior Resource Group and Welltower. Built between 2008 and 2011, the community has been managed by SRG since 2012. It offers independent living and assisted living units. Then, if seniors housing has an affordability problem, then maybe age-restricted manufactured housing communities are part of the solution. To that end, Greystone arranged a $33.7 million Freddie Mac loan to refinance one of those... Read More »
Walker & Dunlop Announced Cape Cod Closing
Walker & Dunlop both structured and provided $28.3 million in acquisition financing for the new owner of a 194-bed senior care campus in the Cape Cod town of Brewster, Massachusetts. Coming with a two-year term and interest-only payments throughout the life of the loan, the financing covers about 90% of the acquisition costs, leaving the borrower with funds to execute on some renovations at the facility. That borrower was The Pointe Group, a private, family-owned and locally managed senior living and rehabilitation provider in Massachusetts. Previously owned and operated by Joshua Zuckerman, who wanted to retire from the business, the 135-bed SNF was built in 1995, while the 59-unit... Read More »
KeyBank Refinances Raleigh Senior Living Community
Peter Trazzera, Patrick Gilbreath and Megan Major of KeyBank Real Estate Capital structured a $40 million bridge loan to refinance a 183-unit senior living community in Raleigh, North Carolina. Developed, owned and operated by Singh Development, the community features 121 independent living, 39 assisted living and 23 memory care units, and operates under the Waltonwood brand. It opened in January 2019 at a cost of $60 million, or $327,900 per unit. Earlier this month, KeyBank also secured $10.6 million in financing for an affordable housing developer/operator to build a 60-unit Section 8 senior apartment community in Cincinnati, Ohio. The borrower, The Model Group, also obtained financing... Read More »
Of Ventas, Welltower and NIC
I know as one gets older, confusion can become more common. And today, I am a little confused about the state of the senior living industry. -Sponsored by The Senior Care Acquisition Reports NIC MAP has reported that maybe we have hit bottom in the third quarter, and that new construction starts are starting to decline, even though new openings remain high. Assisted living occupancy, while posting a small sequential increase, still remains far too low to get excited, but bottoming out would be welcome news. Then, Ventas reported its third quarter earnings, painting a not-so-pretty picture. Their RIDEA operating portfolio has not been performing well, posting a 5.0% decline in... Read More »Schedule a demo
Gain access to the best healthcare and long-term care investment intelligence, data, and analysis.
