Going Concern Problems at Capital Senior Living
Late last Friday, Capital Senior Living announced that it expects to disclose its first quarter earnings results before the market opens on May 21, and then hold its conference call with analysts. It will not be pretty. Also late Friday, the company filed an 8-K with the SEC stating that the coronavirus was taking its toll, and we quote: “The sudden onset of COVID-19 has had a significant adverse impact on occupancy levels, revenues, expenses and operating results at our communities. Although we are unable to predict the full nature and extent of the impact of COVID-19 at this time, we expect COVID-19 will continue to have a significant adverse effect on our business, financial... Read More »
Welltower Reports Q1 Earnings
Welltower announced its first quarter earnings last week, and the REIT caused a bit of a buzz by cutting its May 2020 dividend to $0.61 per share from the previous dividend of $0.87 per share. Cutting dividends is not as rare an event these days, just ask Sabra Health Care REIT or Diversified Healthcare Trust, but if you’re a REIT, this may be the best time to do it. Welltower further added to its liquidity by settling forward equity sales agreements totaling $588 million and closing a $1 billion unsecured, two-year term loan that bears interest at LIBOR plus 120, and adding $110 million of incremental cash flow retained per quarter by cutting the dividend. The REIT also completed pro rata... Read More »
Blueprint Closes Ohio SNF Deal
Connor Doherty, Ryan Kelly, Chris Hyldahl and Gideon Orion of Blueprint Healthcare Real Estate Advisors closed a skilled nursing deal in Ohio on May 1. It took a motivated seller, experienced buyer and a willing lender to get the deal done, not always an easy combination these days. An older vintage with some recent updates, the 150-bed skilled nursing facility is located near Youngstown, Ohio. It was owned by a REIT and managed by a large national operator, but the time had come to sell. Turnover in key leadership positions had caused occupancy to decline, which we are sure added to the motivation to exit. Blueprint positioned the property as a value-add opportunity, if a new... Read More »
Aaron Becker Will Lead Senior Care Production at ORIX
ORIX Real Estate Capital has announced that Aaron Becker will lead the combined company’s (including Lancaster Pollard, RED Capital Group and Hunt Real Estate Capital) production efforts for the Seniors Housing & Healthcare team. Based in the firm’s Philadelphia office, Mr. Becker will also lead the East Coast team that services senior living clients. In addition, Lancaster Pollard veterans Casey Moore, Doug Harper and Quintin Harris each expanded their leadership roles, with Moore and Harper leading the West and Harris leading the Midwest. Business is still getting done at the newly merged company, with Lancaster Pollard closing five HUD loans in the month of April for seniors... Read More »
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 »Schedule a demo
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