• Seniors Housing M&A Market Comes to Life

    Welltower’s recent announcement of two portfolio sales at low cap rates during the pandemic bodes well for the market. It has been a quiet past few weeks in the seniors housing M&A market. Last week was the first time we can remember when we have gone an entire week without one announced acquisition. That leaves us worried as to the... Read More »
  • Newmark Knight Frank Handles Welltower’s $1.3 Billion Sale

    There were rumors circulating last month of a major portfolio sale by one of the healthcare REITs, and given the dearth of deals in May, we clung on to the promise of it. Well, on June 1, Welltower announced not one, but two large seniors housing portfolio dispositions, along with a major medical office building sale, all combined for a roughly... Read More »
  • Two REITs Provide COVID and Census Updates

    Welltower recently disclosed what has been happening at its large seniors housing operating portfolio (SHOP), and we again give them credit for being transparent with investors as to the operating performance of its customers. In the second quarter through May 29, its SHOP portfolio has seen occupancy decline by 420 basis points. That’s the... Read More »
  • May’s M&A Meltdown

    The M&A statistics are in for May, and it was a doozy. Only 19 seniors housing and skilled nursing deals were publicly announced during the month, nearly half of which coming from the first quarter earnings reports of several public companies. Without those, we would have barely made it to double digits. You have to go back to July 2017 for... Read More »
  • Blueprint Closes Another LTC Properties Sale

    After representing LTC Properties in its five-phase sale of a 2,500-bed skilled nursing portfolio, Blueprint Healthcare Real Estate Advisors went back to the well, handling LTC Properties and Senior Lifestyle Corp.’s sale of two large seniors housing campuses in Arizona. The deal closed on April 21, with Humair Sabir, Amy Sitzman and Jacob Gehl... Read More »
Diversicare Healthcare Delisted

Diversicare Healthcare Delisted

Just two days ago on these pages, we warned that the share price of Diversicare Healthcare Services was trending dangerously low. We weren’t kidding. The next day the shares were delisted from NASDAQ because they no longer met the minimum market value requirement of at least $35 million. That’s for sure, and with several days of double-digit price declines, the market cap of less than $10 million is just 30% of the required minimum. Management’s appeal to avoid the delisting decision was denied. The share price hit a 52-week low of $1.16 yesterday, down nearly 50% in just a few days. Unfortunately, it doesn’t take much when your shares are under $2.00 each. Just $70,000 of trades took the... Read More »
Diversicare Healthcare Services Trending Dangerously Low

Diversicare Healthcare Services Trending Dangerously Low

Shareholders of Diversicare Healthcare Services have been pummeled recently, with the share price down about 65% in the past 12 months, and down 40% since July 1. Not what shareholders want to see, especially with the markets as strong as they have been (with the frequent hiccups, of course). The company is the smallest of the publicly traded skilled nursing companies, with 72 SNFs and 8,214 beds in operation as of June 30 plus an additional 429 assisted living and personal care beds. But to report adjusted EBITDA of just $600,000 in the second quarter was, well, just too much, and the news sent the price diving. Year-over-year skilled nursing occupancy declined by 130 basis points to... Read More »
Blueprint’s Latest Transaction Trio

Blueprint’s Latest Transaction Trio

It’s proving to be a banner year for Blueprint Healthcare Real Estate Advisors, which has already announced 63 transactions closed, and counting. That not only beats Blueprint’s 2017 total of 53 transactions but is just one off of the previous record-high (Marcus & Millichap’s 64 transactions closed in 2015), according to our yearly broker rankings. We still don’t know the final count, but after just five years in business, that is an impressive rise. The last three deals saw seven more properties sold on the year. First, Ben Firestone and Michael Segal helped Diversicare Healthcare Services sell three skilled nursing facilities in Kentucky for $18.7 million, or $74,200 per bed.... Read More »
Diversicare Divests Three Kentucky Properties

Diversicare Divests Three Kentucky Properties

After a “challenging quarter” when Diversicare Healthcare Services reported a net loss of $7.4 million, (compared with a $600,000 loss last third quarter), a drop in average occupancy to 79.3% (down from 80.1%) a $6.4 million contingent liability fund regarding potential false claims violations, AND the departure of their CEO Kelly Gill, the company completed the sale of three skilled nursing facilities in Kentucky earlier this month. As required by bank agreements, the company used the net proceeds to entirely pay off the associated indebtedness and are probably pretty happy to move on and concentrate on bigger problems. The facilities in question were in Fulton (60 beds), Glasgow (94... Read More »

Senior Care Stocks Remain in Doldrums

Seniors housing and care stocks remain in the dumps. There has been no Trump bump for them, as the rest of the market is up 16% since the beginning of this year. We should be only half as lucky. One would think that the skilled nursing dominated companies would have been the hardest hit, given all the talk of Medicaid block grants and census declines. But through mid-October, two of them have actually posted gains so far. Diversicare Healthcare Services is up 11% and The Ensign Group has eked out a small 2.2% gain so far this year. Meanwhile, National HealthCare Corporation has dropped nearly 15% this year, and Genesis HealthCare has plunged more than 75% and has settled in around $1.00... Read More »