Senior Care and REIT Stocks Collapse
Brookdale Senior Living and HCP, Inc. were the first to report on fourth quarter earnings, and investors did not like what they heard. I really don’t know what to say about the news that came out yesterday, other than it had a disastrous impact on the market. Investors were hoping for something positive out of Brookdale Senior Living’s earnings call, but what they got was that a sale of the company was off the table, they may do a stock buyback, and slow growth is what can be expected now. The reaction? The stock plunged by 25% in two hours. HCP, Inc. announced its fourth quarter results, which included announcing they were writing down their HCR ManorCare investment by $817 million, and... Read More »
Civitas firing on all cylinders
A seniors housing developer active in Texas, after already opening five assisted living/memory care communities in the state last year, with three more currently under construction, is jumping back into the acquisition market to grow its portfolio. Civitas Senior Living purchased two former Brookdale Senior Living communities (with 58 independent living, 65 assisted living and 36 memory care units) in Harlingen, Texas (Brownsville MSA) for an undisclosed price. Civitas will take over operations and commence renovations to the common areas early this year. This is not the first acquisition for the fast-growing developer, however, which last September announced a new post-acute care... Read More »
Have We Finally Bottomed Out?
With senior care stocks plunging in recent weeks, it appears we may have finally bottomed out with a significant rally on January 14. I am sure many of you were watching in despair as senior care stocks have been plummeting since the beginning of the year. It was not rational, it had little to do with core value, it had little to do with current operating performance, and it really did feed on itself. And, seniors housing and care stocks get thrown in the “health care” bucket at mutual funds and other institutional investors, so if they decide to lower their holdings in health care, for whatever reason, the senior care baby gets thrown out with the healthcare bathwater. But hundreds of... Read More »Senior Care Prospects Dimming With Investors
Investors are selling senior care stocks, and perhaps because occupancy is in a rut with increasing construction starts. So, what are we to make of the dismal start of the New Year? Investors have hammered away at senior care stocks, and it has been ugly. On Monday, Brookdale Senior Living, Capital Senior Living, Genesis Healthcare and Kindred Healthcare all hit new lows. Who would have thought? Is it a sector problem with investors, or are they nervous about the near-term future? Last week NIC MAP released its fourth quarter occupancy numbers, and while some analysts saw the positive side of a slight sequential increase in overall seniors housing occupancy, the reality is that it is still... Read More »Schedule a demo
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