Dwight Capital Refinances Utah Assisted Living Community
Dwight Capital got a HUD financing closed in West Jordan, Utah (Salt Lake City MSA). The target was a Beehive Homes community built in 1996 and 2007 on over 1.5 acres. It currently consists of 50 beds in 50 units and is located less than a mile from Jordan Valley Medical Center. The license allows the community to care for 11 AL Type-1 residents, 16 AL Type-2 residents and 16 residents in a secure memory care unit. To refinance the property, Kevin Lifshitz of Dwight Capital arranged a $4.28 million loan with a 35-year term and amortization. We’re sure it was no easy feat. Read More »
Stock Buybacks vs. Dry Powder
Should REITs be using excess cash to buy back their shares at cheap prices, or wait and go bargain hunting for cheap properties? Good morning. I am in day nine of my 14-day self-quarantine, and have yet to go stir crazy. Apparently, in Connecticut, liquor stores are exempt from the shut-down. Hmmm. While we hear anecdotally that occupancy levels in seniors housing remain relatively unchanged, I do not see how that will remain so in the coming weeks and months. Companies and owners, such as REITs, are just beginning to report confirmed cases of COVID-19, along with the unfortunate deaths. While expected, we still continue to hope they can keep it to a minimum. One thing I am a little... Read More »
Senior Living Investment Brokerage’s Brookdale Sale
Sales are still getting done at Senior Living Investment Brokerage, with Brad Clousing, Jeff Binder and Patrick Burke handling the sale of a 78-unit assisted living community in Northport, Alabama. In 2019, Mr. Clousing had also sold a 161-bed skilled nursing facility in Northport, so we’re sure that experience helped in this transaction. Built in 1999, the community is situated on about four acres along the Black Warrior River near Tuscaloosa. In addition to the 68 assisted living units, it includes 10 units and 16 beds of memory care. A Mid-Atlantic-based owner/operator bought the community, its second in the state of Alabama, and plans to invest in physical plant... Read More »
Meridian Capital Group’s Impressive March Activity
Meridian Capital Group has had a productive start to the year, including an especially busy last few weeks. We imagine they gained some knowledge from closing deals during that period, which could not have been straightforward. So far in 2020, the group has arranged $563 million in financing for skilled nursing, assisted living and memory care communities, and in the last three weeks they closed $301 million in financings across seven states. Working through a commercial bank, the team of Ari Adlerstein, Ari Dobkin and Josh Simpson first arranged a $34 million refinance of four memory care communities totaling 264 units in Florida, New York, Ohio and Arizona. Also, in Florida, they... Read More »
Creativcap Announces Sale and Several Loan Closings
It’s good to see business still getting done these days. Scott Kavel, Founder and Principal of Creativcap, took that to another level by announcing four transactions in the last week, including one sale and three loan closings. The transactions were likely nearly finalized before much of the mayhem started, but to close a deal in this environment is an accomplishment. The sale included a stand-alone memory care community in the Southeast. Built in 2015, it features 65 units and nearly 54,000 square feet. Occupancy was over 95%, and operations stayed on track throughout the sales process. Its location is undisclosed but was in a top-tier market in the Southeast. That location, along with... Read More »
REITs Announce Share Repurchase Programs
Amid the cratering of share prices across most industries, a couple of healthcare REITs announced share repurchase plans. LTC Properties announced that its Board of Directors approved a share repurchase plan involving an aggregate of up to five million of its outstanding shares of common stock. The company made the plan public on March 12th, when the company’s stock price closed at $29.53 per share, down from $48.84 per share on March 5th. Its stock price has since fallen a little further, hitting bottom (we hope) at $24.49 on March 18th, the same day when most stock indices also reached their near-term lows. LTC plans to use the proceeds from several asset sales to execute on some of the... Read More »
The HUD Doors Are Still Open
One thing to come out of the coronavirus crisis (among many things) has been record-low interest rates, with the 10-year Treasury yield falling as low as 0.318% on March 9 and the federal funds rate being cut to 0-0.25%. It has been in the federal government’s interest to maintain liquidity in the market, as much as possible, so how has that policy affected HUD lending in the senior care industry? We asked Michael Gehl of Housing & Healthcare Finance a few questions, and here are his answers: 1) First question is, is HUD still doing business? Yes, HUD is still doing business, as you can imagine a number of people are working from home, which does create its challenges not... Read More »
Welltower Prepares for the Worst
Welltower announced a couple of moves to significantly increase its near-term liquidity. With all the uncertainty going around right now, that seems to be a prudent move. As of March 20, 2020, the REIT had $338 million of cash and cash equivalents and about $1.5 billion of available borrowing capacity under its unsecured revolving credit facility. Now, Welltower has added a two-year unsecured term loan of $1.0 billion, bearing an interest rate of 30-day LIBOR +1.20%. The company will also have the right to increase the loan amount by an additional $200 million. Proceeds from the loan will be used to repay borrowings under Welltower’s unsecured revolving credit facility and commercial paper... Read More »Irrational Valuations for REIT Shares
What a week it has been. At the market’s close on Wednesday, Ventas was yielding 18.7%, Omega Healthcare Investors 18.0% and Sabra Health Care REIT 30.4%. This assumes they all maintain their current dividend rates. Ventas just announced the payment date for its dividend at the same rate as last year. Of course, Ventas plunged by 19% on Wednesday, Omega by 17% and Sabra by 20%. These drops, on top of the previous weeks’ plunge, caused yields to skyrocket. Obviously, this is irrational, even in these days of the coronavirus/Covid-19 pandemic (CV-19). All of the other healthcare REITs fared poorly as well. But does this represent a buying opportunity?... Read More »
Genesis HealthCare Sees Share Value Rebound
It’s no surprise that Genesis HealthCare has seen a significant drop in its share value as a result of Covid-19. The company owns and operates facilities that care for a medically-complex population that is most vulnerable to the virus, which is a huge risk in itself. The horrifying situation at a Life Care Centers facility in Kirkland, Washington, where 129 cases of Covid-19 have been confirmed (81 residents, 34 staff members and 14 visitors) and 35 people have died (more than half of the state’s total), has also colored the image of SNFs in this situation, probably contributing to the flight of capital from the sector’s stocks. During the massive... Read More »Schedule a demo
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