How Have the REIT Stocks Performed in 2019?
Last week, we discussed the stock performance of the seniors housing and healthcare providers. Now, it’s the healthcare REITs’ turn. Overall, it was a good first half of the year, with all of them posting price increases, with the exception of Senior Housing Properties Trust, reflecting its Five Star problems. Its share price tumbled by 29.4%. The top performer was New Senior Investment Group, but it came off a terrible 2018 (down 45%) and still trades below what it did 18 months ago. The star of the year, so far, is CareTrust REIT which is up 28.8% after being the second-best performer last year with a price increase of 10%. And then there is HCVenTower, otherwise known as the Big Three,... Read More »
Portopiccolo Makes Another SNF Acquisition
The Portopiccolo Group just made its third skilled nursing acquisition of the year, making it one of the most prolific buyers in that space in 2019. Its most recent target was a 150-bed skilled nursing facility in Virginia Beach, Virginia. To fund the acquisition, Portopiccolo turned to Contemporary Healthcare Capital to closed $1.97 million in mezzanine financing in addition to receiving a senior loan from United Community Bank. About $2.7 million in capital upgrades will also be funded. The transaction is similar to Portopiccolo’s acquisition earlier this year of a 130-bed skilled nursing facility in Roanoke, Virginia that included a 24-bed accredited ventilator unit. That always... Read More »
Healthcare M&A Hits Frenzied Pace
Deals are still bubbling to the surface, but the second quarter is in the books, and it was another big one for healthcare M&A. Across the 13 sectors, spanning from behavioral health and rehabilitation to biotechnology and our bailiwick, long-term care, we recorded 423 separate transactions, up from 393 deals in the first quarter, according to our M&A database Deal Search Online. Leading the way in activity, not surprisingly, was Long-Term Care with 113 mergers and acquisitions, followed by Other Services (which includes urgent care centers, ambulatory care centers, CROs and other health care services not placed into the other sectors) with 49, eHealth (47), Pharmaceuticals (37)... Read More »
CareTrust Invests in Idaho
CareTrust REIT and Cascadia Healthcare expanded their relationship to 12 facilities and 1,013 total beds with the REIT’s acquisition of a brand-new transitional care facility in Nampa, Idaho. This transaction was by no means out of the blue. Cascadia’s development affiliate opened the 99-bed facility in 2017, but before that, CareTrust had made a preferred equity investment in the property in addition to obtaining a purchase option at a formula-based price upon stabilization of the operations. Fill-up must have gone smoothly, since the property sold to CareTrust for approximately $12.8 million, inclusive of transaction costs and after receiving credit for its original equity investment and... Read More »
(Most) Senior Care Provider Stocks Shine in H1:19
[featured in the July issue of The SeniorCare Investor] With the overall stock market posting its best first half of a year since 1997, one would expect that seniors housing and care stocks would also have performed well. The major benchmarks are up 14% to 17% so far this year, and only two of the providers have topped that. Of the larger cap providers, The Ensign Group was the star with a 46.7% price increase in six months, and that was after jumping by 74.7% in calendar 2018. The company just keeps on rockin’, and when it splits into two separate operating companies later this year, one for skilled nursing and one for seniors housing and home health care, the expectation is that the... Read More »
CBRE Comes Full Circle
CBRE was all over the sale of a seniors housing community in Conroe, Texas, facilitating its sale on behalf of the previous owner and arranging acquisition financing for the buyer, Chicago Pacific Founders. Originally built in 2016 by a joint venture between Paradigm Senior Living and Padua (a real estate development firm based in Houston), this community features 60 independent living, 60 assisted living and 20 memory care units, along with 17 detached IL cottages across an 11-acre campus. Its $30 million construction cost was financed by one of Lancaster Pollard’s first Propero™ loans, which totaled about $26.7 million. The JV contributed a portion of equity and also received a purchase... Read More »
The Disgraceful Democratic Debates
The presidential debates last week had a glaring hole, one that everyone should be concerned about. I don’t know about you, but I watched all four hours of the presidential debates last week. I do sort of thrive on those things. But didn’t you think there was something missing? Something major that was not asked? There was not one question from the moderators about fixing Social Security, or Medicare, or Medicaid, or our growing national debt. The Social Security “trust fund” is projected to be depleted in 16 years, just when the last boomer turns 71. Next year it will spend more than it takes in for the first time in nearly 40 years. Medicare’s hospital insurance “trust fund” is expected... Read More »
Cascade Capital Group Acquires 16 Former Skyline SNFs
The future is looking brighter for 16 South Dakota skilled nursing facilities formerly owned by Golden Living and operated by Skyline Healthcare, as Cascade Capital Group acquired the portfolio. The facilities had been operated by a receiver since last Spring, after Skyline infamously ran nearly empty on basic food and medical supplies for them. Houlihan Lokey Capital represented Golden Living in the transaction, which included more than 1,000 beds across the state from Rapid City to Sioux Falls. To fund the deal, Cascade secured financing through its long-standing lending partner, CIBC Bank USA. Cascade’s operating partner, Legacy Healthcare, will take over the operations; no easy task.... Read More »
Clousing Sizzles in the Southeast
The summer heat isn’t getting to Brad Clousing of Senior Living Investment Brokerage, who recently closed two transactions in the Southeast. First, Mr. Clousing was joined by Daniel Geraghty and Dave Balow to sell a personal care community about 65 miles northeast of Atlanta. Originally built in 1994, the community operates with 24 private personal care units and 10 semi-private memory care units. It was extensively renovated in 2015 and offers additional room for an expansion. With the renovation complete and the community stabilized at 97% occupancy, its local owner/operator decided to exit the asset. A Northeast owner/operator entered the Georgia market with its purchase of the... Read More »
O&M Investments Adds Another SNF
Private equity firm O&M Investments acquired a value-add skilled nursing facility in the Dallas, Texas market. At face value, this appears to be a good opportunity for O&M to generate a healthy return. First, the facility is relatively new at just 13 years old, with improvements made in 2010. Second, it recently converted a wing of the facility to skilled memory care, which should improve quality mix (currently at 16%) and revenues. Because of the conversion, the facility currently operates with 104 out of 124 licensed beds, with 83% occupancy based on the functional beds. Finally, the facility is located in an affluent, inner suburb of Dallas (Richardson), which certainly doesn’t... Read More »Schedule a demo
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