• Carnegie Capital Announces Latest Closings

    JD Stettin of Carnegie Capital has certainly had his hands full recently, having closed a couple of refinances in the Pacific Northwest, no easy task in the early days of COVID-19, we’re sure.   Mr. Stettin first sourced and structured a cash-out refinance of a 60-unit memory care community near Eugene, Oregon. Featuring a roughly 50-50 mix of... Read More »
  • PGIM Refinances Tennessee Senior Living Community

    PGIM Real Estate announced its latest transaction, with Executive Director Chris Fenton leading the way. It involved a $10.6 million HUD refinance of a senior living community in Ashland City, Tennessee. Built in 2015 with 100 beds in 80 units, the community provides assisted living and memory care services in a four-story building.   Thunderhawk... Read More »
  • Greystone Arranges HUD Construction Debt

    Working through HUD, Lisa Fischman of Greystone facilitated construction financing for an assisted living community to expand its Buffalo, New York-area campus. Originally built in 2003 with 110 beds in 84 units, the community is located on a 20-acre campus. Onsite amenities including a theater, physician’s office and beauty salon certainly... Read More »
  • Genesis HealthCare’s Shares Double in Value

    Leading up to Genesis HealthCare’s first quarter earnings release and conference call, the company’s share price took off. The rise started on May 22 when it jumped by 22% on high volume, but then it added another 35% on volume that was 10 times the average. In the course of four days, the price more than doubled, from $0.63 per share to $1.37... Read More »
  • Looking for Answers in the Lending Market: A Q&A with Alec Blanc of Monarch Advisors

    To get a sense of what is going on in the capital markets in this immediate post-COVID-19 world, we turned to Alec Blanc of Monarch Advisors for his own thoughts.   How has the lending environment changed from the beginning of the second quarter to now?  Overall, there is less debt capital available than there was prior to the COVID-19 crisis. ... Read More »
Capital Senior Living Reports, Again

Capital Senior Living Reports, Again

After Capital Senior Living filed an 8-K recently talking about “going concern” issues, we have to admit we were a little nervous about the delayed first quarter earnings release. Let’s just say, it could have been worse. They included the “going concern” clause, which basically says the current conditions raise “substantial doubt about the company’s ability to continue as a going concern for the 12-month period following the issuance of its financial statements” for the first quarter of 2020.   Well, after reading the financial statements, it seems like there is definitely room to “continue” for the next 12 months, given some of the steps it has taken. They will have... Read More »
Going Concern Problems at Capital Senior Living

Going Concern Problems at Capital Senior Living

Late last Friday, Capital Senior Living announced that it expects to disclose its first quarter earnings results before the market opens on May 21, and then hold its conference call with analysts. It will not be pretty.  Also late Friday, the company filed an 8-K with the SEC stating that the coronavirus was taking its toll, and we quote: “The sudden onset of COVID-19 has had a significant adverse impact on occupancy levels, revenues, expenses and operating results at our communities. Although we are unable to predict the full nature and extent of the impact of COVID-19 at this time, we expect COVID-19 will continue to have a significant adverse effect on our business, financial... Read More »
Capital Senior Living Files Registration Statement

Capital Senior Living Files Registration Statement

At the end of last week, Capital Senior Living filed an S-3 registration statement for the issuance of up to $150 million in various securities. And when we say “various,” we mean it. It could be common stock, preferred stock, senior debt, subordinated debt, depositary shares, warrants, rights, units, purchase contracts…you name it. What we don’t know is if this was just a formality, with this shelf registration statement replacing an old one that was expiring. If so, no big deal. If not, and if they might issue new debt, stock or other securities, that could be a troublesome sign.  After their fourth quarter earnings call, we felt a little better about their prospects, with... Read More »
Capital Senior Living Finally Reports

Capital Senior Living Finally Reports

After a two-week delay, Capital Senior Living reports fourth quarter results, and a little of first quarter. After delaying its fourth quarter earnings release by two weeks, Capital Senior Living finally produced the results. And they were not as bad as we expected. Phew. To be honest, I was thinking it could be so bad that bankruptcy would be floated as an option. Not this quarter. The bottom line is that the fourth quarter was not good, with same-community year-over-year occupancy declining by 290 basis points to 81.4%, and the operating margin falling by 600 basis points to 29%. Both are very large drops in a 12-month time frame. And both are worse than their peer group. The good news... Read More »
Genesis HealthCare Sees Share Value Rebound

Genesis HealthCare Sees Share Value Rebound

It’s no surprise that Genesis HealthCare has seen a significant drop in its share value as a result of Covid-19. The company owns and operates facilities that care for a medically-complex population that is most vulnerable to the virus, which is a huge risk in itself. The horrifying situation at a Life Care Centers facility in Kirkland, Washington, where 129 cases of Covid-19 have been confirmed (81 residents, 34 staff members and 14 visitors) and 35 people have died (more than half of the state’s total), has also colored the image of SNFs in this situation, probably contributing to the flight of capital from the sector’s stocks.   During the massive... Read More »