Ventas Posts Decent Q1 Earnings
Ventas came out with its first quarter earnings at the end of April, and although the results were decent, it may not have been the best timing to follow the strong quarter posted by Welltower earlier this week, as Ventas’s stock price tumbled 6.4% seemingly because the REIT affirmed its full-year guidance rather than increased it. By contrast, Welltower raised guidance and its stock price jumped 3.5% on the news. Ventas provided commentary on guidance for 2025 normalized FFO per share, outlining that it benefited from NOI growth in the SHOP segment and from accretive seniors housing investment activity in 2024 and expected in 2025. But it was partially offset by the impact of higher net... Read More »
Welltower Acquires Large SNF Portfolio
In its first quarter earnings release, Welltower revealed that it acquired a portfolio comprising 48 skilled nursing facilities for nearly $1 billion. The price consisted of $750.83 million of cash consideration and $240.01 million of common stock consideration, totaling $990.84 million. In connection with the closing, the acquired properties were leased to Aspire Healthcare under a long-term, triple-net master lease. The portfolio currently has enough cash flow to cover one year’s rent, and the facilities had an average occupancy in the mid-60% at the time of closing. The deal previously fell through, allowing Welltower to negotiate a significant price reduction “to the tune of a couple... Read More »
Senior Care Portfolio Secures Bridge Loan
Grace Hill Capital, a real estate capital advisory firm specializing in seniors housing and healthcare that was founded in 2023 by Adam Shealy, served as exclusive financial advisor and placement agent for a bridge loan to refinance and recapitalize a seven-community seniors housing and care portfolio across Georgia, North Carolina and South Carolina. The interest-only bridge loan totaled $46.97 million and was structured with a 36-month term. The portfolio includes a total of 432 units and beds, consisting of 76 independent living units, 250 assisted living units, 59 memory care units and 47 skilled nursing beds. The transaction enabled the borrower to retire existing debt, complete a... Read More »
Atlas Senior Living Grows in Alabama
Birmingham-based operator Atlas Senior Living is increasing its scale in northern Alabama, having acquired Thrive at Jones Farm in Huntsville. Atlas also operates The Goldton at Athens, Monark Grove Madison, and Madison at The Range, with Goldton being its luxury brand. The Huntsville location will be renamed The Goldton at Jones Farms. Built in 2017 by a joint venture between Harrison Street, local investors and Thrive Senior Living, the community has 93 units of assisted living and memory care. As part of the transition to Atlas, the community will be implementing new technology through partnerships with Alexa and Speak2. Speak2 empowers seniors to use simple voice commands to make... Read More »
Forbright Closes HUD Financing for Maryland SNF
Forbright Bank’s HUD lending team recently closed a 232/223(f) loan for a skilled nursing facility in Rockville, Maryland. The new $19.9 million loan refinanced the existing Forbright Bank bridge loan (which provided cash-out after the initial funding), returned the original equity investment to the key principals, reimbursed the borrower for recent capital expenditures, and covered all transaction costs associated with the HUD loan. The facility has 100 beds and is in a market that is well-known to Forbright. Read More »
Corum Asset Management Acquires PACE Medical Facility
JLL Capital Markets completed the sale of WelbeHealth Fresno Center, an 18,869-square-foot, Class-A PACE medical facility in Fresno, California. The seller was Turner Impact Capital’s Turner Healthcare Facilities Fund, a growing social impact investment fund, which was represented by JLL in the deal. JLL also procured the buyer, Corum Asset Management, a French investment firm that manages over $9 billion in real estate and alternative investments. This was the first transaction between JLL and Corum. WelbeHealth – Fresno Center was originally built in 1975 and renovated in 2020. The fully leased facility is part of the PACE (Program of All-Inclusive Care for the Elderly) healthcare... Read More »
60 Seconds with Swett: Welltower Is on a Roll
Welltower came out with its first quarter earnings on Tuesday, and surprise, surprise, it was yet another great quarter, and its share price jumped 3.5% immediately upon the news. It was the tenth consecutive quarter in which same store SHOP NOI growth exceeded 20%, at 21.7% in the first quarter. Guidance for same store NOI growth also rose by 100 basis points to a midpoint of 19.0% for FY2025. On Tuesday’s call, Welltower did mention that SHOP margins remain below pre-pandemic levels, but they may not be for long. Also, that issue currently plagues thousands of communities in this country and was prevalent in the years before COVID too. Perhaps that is why most of what we hear from... Read More »
DHC Closes Freddie Mac Financing
Diversified Healthcare Trust closed a nine-figure Freddie Mac financing secured by seven seniors housing communities in five states. Totaling 1,184 units, the assets are managed by Five Star Senior Living, the operating division of AlerisLife Inc. The $109 million loan comes with a 10-year term and a 6.22% fixed interest rate, with interest only payable during the first five years. It matures on May 1, 2035, and DHC intends to use the loan proceeds to redeem a portion of its outstanding 9.75% senior notes due in 2025. Based on the 2024 NOI for the seven collateral communities, the appraised value of $236 million reflects an implied cap rate of 7.3%, or approximately $199,000 per... Read More »
CFG Provides Interim Financing
Last month, Capital Funding Group closed a $53.4 million bridge-to-HUD loan, providing interim financing to facilitate the refinancing of a maturing loan supporting two skilled nursing facilities and one assisted living community in Victorville, California. CFG intends to refinance the loan into permanent, long-term debt through HUD. Patrick McGovern handled the transaction. This transaction follows CFG’s recent announcement highlighting the closing of $50.5 million in subordinate financing, which contributed to a nationally recognized borrower’s $375.5 million loan. The transaction supported the refinancing of 25 SNFs featuring 3,243 beds across the country. CFG restructured two existing... Read More »
Greystone Provides Bridge Financing to Oxford Capital Group
Greystone provided $41 million in bridge financing to Oxford Capital Group for the acquisition of six assisted living communities totaling 372 beds in Minnesota. The financing was originated by Christopher Clare with assistance from David Young, Ryan Harkins, Ben Rubin, Parker Nielsen and Liam Gallagher. Greystone’s $41 million interest-only, non-recourse bridge loan carries a 24-month term with two six-month extension options. The acquisition financing for the properties in the Minneapolis area and northern Minnesota enabled the borrower to close the transaction and begin working with Greystone on securing permanent HUD financing. In March, Oxford purchased 11 assisted living communities... Read More »Schedule a demo
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