Should Diversicare Health Be Worth Double Its Current Price?
Although Diversicare Health and a few others may disagree, it is not always a bad thing to have an activist shareholder or two as investors in your company. They can keep you on your toes, force you to look at options to enhance value that you may not be considering, and their actions often result in publicity for an “undervalued” stock that may bring other shareholders in, which should help in driving the price up. Diversicare Health is a small company, with a stock market capitalization of around $70 million. It has been growing, but mostly with new leases which did not need much capital to acquire. That is good news, at least on the capital side. Currently, about 19% of the skilled... Read More »CareTrust REIT Keeps It Up
CareTrust REIT is heading closer and closer to the 200-facility mark, currently sitting at 181 properties in 23 states, as it continues to purchase senior care facilities across the country. Just last month, the REIT bought 13 skilled nursing facilities in Washington, Texas and Idaho, all formerly operated by affiliates of Kindred Healthcare. Now, CareTrust has added three more Kindred facilities in Washington State to its growing portfolio. Located in Arden, Lakewood and Vancouver, the facilities total 268 beds. CareTrust added them to its existing master lease with affiliates of Five Oaks Healthcare, which has a remaining initial term of about 13 years, two five-year renewal options and... Read More »Aging Skilled Nursing Facility Sells In Texas
September saw many deals that featured older, struggling skilled nursing facilities. This comes at a time of record-high SNF prices, on a per-bed basis, although maybe not for long if the fourth quarter follows September’s performance. The truth is that despite the record high prices we have seen (reaching nearly $100,000 per bed in the four quarters ended March 31, 2017), the SNF industry probably faces more headwinds than tailwinds, ranging from aging facilities and shorter patient days to reimbursement risks and poor lease coverage, to name a few. Another truth is that the industry is becoming more and more bifurcated by the older, traditional nursing facilities on one end to the brand... Read More »Senior Care Realty Gets It Done
There was a roadblock, but Senior Care Realty’s Daren Dudgeon sold a 60-unit assisted living campus in Wisconsin. A husband and wife team had gradually built the campus over the years, starting with a 20-unit (20-bed) building in 1997, then another, and finally a third identical building added in 2005. Each building featured a common room, kitchen and dining room, while all the rooms came with at least a half-bathroom. The owners even had land for a fourth building and had been in partnership with another local mom-and-pop, but they recently decided to retire and sell the campus, which was around 94% occupied, with a 58% private pay census. Despite the less-than-optimal payor mix,... Read More »Recent Senior Care M&A Deals, Week Ending September 29, 2017
Check out our recent senior care transactions! Long-Term Care AcquirerTargetPrice Sabra Health Care REIT, Inc.24 skilled nursing facilities$430 million Sagora Senior LivingWatercrest at Alamo Ranch & Isle at WatercrestN/A Sagora Senior LivingWatercrest at Sugar Land & The Sycamores at Sugar LandN/A Thrive FPAutumn Leaves of Northwest Austin & Autumn Leaves of Glen EllynN/A Texas investment groupWinchester Meadows$15... Read More »
Byrne Sells in Sedalia
Rural seniors housing communities, even when they are relatively newly built, often come with a risk. Located far from high-density and high-income areas, these communities can sometimes struggle to maintain consistently high occupancy or strong levels of cash flow, especially if there is a significant Medicaid census. However, the right operator can find success in almost any market. That was the case when Patrick Byrne of Senior Living Investment Brokerage sold a 129-unit independent living/assisted living community in the town of Sedalia in central Missouri. Built in 2006, with expansions in 2008 and 2013, the community consists of a 52-unit IL building, with a connecting 47-unit AL... Read More »
Capital One Releases Survey Results
Capital One released its annual survey results from more than 150 senior executives about the 12-month outlook for various issues in seniors housing and skilled nursing. Despite record-high acquisition prices, 37% of the respondents believe acquisitions of existing facilities represent the biggest opportunity, with 30% believing repositioning existing properties represents the best opportunity. In addition, 89% believe the level of M&A activity will remain the same or increase in the next 12 months, split almost equally between the two. Regarding challenges in the next 12 months, 33% cited labor cost pressures and 32% cited supply/demand imbalances. Fewer than 10% were concerned about... Read More »
Sagora Senior Living Adds Two Senior Living Communities To Portfolio
A prominent senior living provider in the Lone Star State, Sagora Senior Living, acquired two more communities, bringing its total portfolio to 31 properties across four southern states. Both properties were developed in late-2014/early-2015 by Dallas-based South Bay Partners under the “Watercrest” brand. The Sugar Land location features 180 units and 12 cottages of independent living, plus an adjacent community with 77 assisted living and 43 memory care units. That is similar to the San Antonio location, with 192 IL units, 26 cottages, 72 AL units and 50 MC units. Once again, the AL/MC building was located on an adjacent property. Based in Fort Worth, Sagora has so far concentrated its... Read More »
Belmont Village Teams With Blue Moon Capital
Belmont Village Senior Living and Blue Moon Capital Partners are teaming up for their first ground-up construction project together, albeit their third venture overall, with a planned 157-unit assisted living/memory care community in Aliso Viejo, California. A master planned community located in the San Joaquin Hills of southern Orange County, Aliso Viejo boasts high home values and high incomes, which should help to fill the luxury community. Featuring both studio and one-bedroom units, the community also comes with a town hall, fitness center, salon and heated salt-water pool. Upon completion in 2018, Belmont Village will operate the community. To fund the project, the venture turned to... Read More »
Welcome to NIC 2017
Welcome to the 2017 Fall NIC Conference, where the buzz is Sabra’s latest acquisition activity, REIT concerns, labor and overdevelopment. Read More »Schedule a demo
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