The IL and CCRC Markets Rule
After suffering in the aftermath of the Great Recession, Independent Living and CCRC property values and occupancy levels have outperformed the rest of the market. Come and learn why and what may happen in the next recession. Sponsored by The Senior Care Acquisition Reports We are 10 years into the recovery from the Great Recession, which had an outsized impact on the independent living and CCRC market because they are not need driven. Today, occupancy levels are higher than for assisted living and much higher than skilled nursing. Yet many investors, lenders and developers still shy away from these property types. Are they missing something? Next Thursday, November 14, we will be... Read More »
Merrill Gardens Buys Big
Merrill Gardens, known more developing seniors housing communities than acquiring them, has acquired Blue Harbor, a Portland, Oregon-based company that currently manages 21 communities in 13 states. The seller was Fortress Investment Group. For Merrill Gardens, it is somewhat of a two-fer, as Blue Harbor’s CEO, Tana Gall, is joining Merrill Gardens as its CEO, replacing David Eskenazy who announced his retirement last month. What’s more, Gall was president of Merrill Gardens from 2013 to 2015 before leaving to start her own consulting company, but was then recruited by Blue Harbor. She also worked at Leisure Care for 19 years, rising to be president there. Not a bad resume. Merrill Gardens... Read More »
Twin Light Capital Makes Debut Investment
Newly formed Twin Light Capital completed the acquisition of 11 seniors housing communities and two development sites in Minnesota. The existing properties have 291 units with 398 licensed beds, and the two development sites have a total of 22.7 acres in Duluth and Fergus Falls. The acquired portfolio includes the Keystone Bluffs assisted living community in Duluth plus 10 Diamond Willow assisted living and memory care communities located throughout the state. The markets these communities are located in have a higher percentage of the elderly than the state as a whole. Full Circle Senior Living will continue to operate the portfolio for Twin Light. Sam Dendrinos and Kloie McCann of CIBC... Read More »
Kansas SNF On the Road to Recovery
The first skilled nursing facility in a Kansas senior care portfolio that has recently been placed in receivership found a new owner, and hopefully a brighter future. Nick Cacciabando of Senior Living Investment Brokerage was hired to sell all three properties that were owned by a Nebraska-based owner, which included both skilled nursing and seniors housing units. Originally built in 1966, the first facility to sell features 41 skilled nursing beds as well as 11 assisted living and 18 residential care units that were recently renovated and converted from skilled nursing. However, those new units were never able to open. Occupancy, based on the skilled nursing beds, was around 90%, but the... Read More »
The Ensign Group Acquires Again
The Ensign Group has been one of the most prolific acquirers in the senior care sector, and they have no intention of stopping. The company just announced a series of acquisitions in Texas for a total of six skilled nursing facilities with 794 beds. In one group, the facilities included a 110-bed SNF in Harlingen, a 146-bed facility in Keller, and a 162-bed nursing facility in New Braunfels. Both the operations and the real estate were purchased. The acquisitions were all effective November 1. In separate transactions on the same day, Ensign bought the real estate and operations of three skilled nursing facilities in San Antonio with a total of 376 beds. These also closed effective... Read More »
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 »Schedule a demo
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