Capital Senior Living Disappoints, And Pays A Price
We have now become nervous with each earnings period because there just seem to be too many surprises. Unfortunately, these surprises have usually been negative. Three months after being positive about the direction of the company, Capital Senior Living spooked investors not only with their poor results in the second quarter, but their dismal prospects for the rest of the year. When you underperform expectations, and cut full-year forecasts by 20%, you should expect the worst. And the worst was a 23% plunge in the share price on August 1, followed by a 5% decline the following morning. Volume was 6x the average, but not heavy in absolute terms. The news also took Brookdale Senior Living... Read More »
Will Brookdale Be Back In Play?
With agreements nailed down with its major REITs, buyers may start sniffing around again at a leaner and more profitable Brookdale. The announcement last week during the ASHA mid-year meeting, that Brookdale Senior Living had come to several agreements with Welltower on their various leases, was met with relief and renewed optimism for the seniors housing sector. Last Friday we reported on the details of the agreements, but most people we spoke with were hoping that as Brookdale’s financial pressures ease, the negative sentiment it had created for the industry will also start to dissipate. In addition, with the change-of-control roadblocks by the Big Three REITs now gone, always used as an... Read More »
Brookdale And Welltower Reach Agreements
Brookdale Senior Living continues to shrink, which is actually good news, and Welltower investors will be glad to see new operators to spread the risk. That is the result of a series of transactions agreed to by the two companies in a major end-of-quarter announcement. Too bad they couldn’t have done this a year or two ago, but maybe it is the new management at Brookdale. In the first of the transactions, Brookdale will pay Welltower $58 million ($14,164 per unit) to cancel leases on 37 communities with 4,095 units in two different lease pools. The leases had current negative cash flow after lease payments, and the projections were for there to be continued losses on them. They were to... Read More »
Is Apollo Global Management Entering Our Space, Again?
After a disastrous outing 20 years ago, Apollo may see better opportunities this time around. The rumors are swirling that private equity giant Apollo Global Management is putting its toe back in our market after a long absence. The rumor is that Apollo is buying 22 senior living communities from HCP, Inc. that are operated by Brookdale Senior Living. HCP previously disclosed that it is under contract to sell the portfolio for $428 million, or about $154,000 per unit, but never disclosed the buyer. Either Apollo is getting a deal, or these are older properties not performing too well, based on the relatively low price point. The last time we recall Apollo making a major investment in the... Read More »Schedule a demo
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