Sabra Health Care REIT Strengthens
Sabra Health Care REIT continues to defy the naysayers, posting a decent third quarter overall, with its skilled nursing portfolio holding the line and its seniors housing portfolio growing revenues, cash net operating income and cash operating margin. Investors sent the shares to a new 52-week high, 56% above its 52-week low, and the forward yield of 7.3% is the lowest it has been in a while. Sabra’s skilled nursing triple-net leased occupancy remained stable at 82.4%, and the EBITDAR coverage remained at 1.24x from the second quarter to the third. While we like to see at least a 1.4x lease coverage, if not higher, the coverage appears to have bottomed out. The seniors housing leased... Read More »
Third Quarter M&A Results Are In
We will be addressing the quarterly seniors housing and care M&A results in both the October issue of The SeniorCare Investor, as well as in our Health Care M&A Quarterly Report, which covers all 13 health care sectors. But, here is a preview: Although it remained above 70 deals for the quarter, seniors housing and care M&A activity fell to a year-low, tying with last year’s third quarter at 71 publicly announced transactions. Dollar volume also fell from its recent peak of $9.7 billion in the second quarter of 2017, recording $2.5 billion in transaction value based on disclosed prices. Increasingly, we have seen buyers prefer the one-off deals that come with one or two... Read More »Enlivant, Brookdale Senior Living and Hawthorn Retirement
After the announcement of Sabra Health Care REIT’s 49% investment in the majority of Enlivant’s assisted living properties at a value of $195,000 per unit, the market chatter started anew. The common theme was that if Enlivant’s properties, which were designed and built in areas assuming a 20% to 40% Medicaid census, could sell for that high a price, surely someone would belly up to the bar and take Brookdale Senior Living private, which generally has nicer properties. Not so fast. Like Hawthorn Retirement before it, which went for a high price, these two companies are relatively “clean,” meaning there are not complex issues to work out, such as landlord permissions, ADA lawsuits and a... Read More »Sabra Health Care REIT Buys Again
Fresh off the heels of its $3.0 billion merger with Care Capital Properties in August and its $430 million joint venture acquisition of most of Enlivant’s assisted living properties for an investment of $371 million, Sabra Health Care REIT announced a $430 million acquisition of 24 skilled nursing facilities with 2,216 beds, or a price of $194,000 per bed. That price will certainly help bolster what has been a mostly down year for SNF pricing, where we have seen more below-average facilities sold than in the previous two years. But this portfolio is certainly not average, with a 92% occupancy rate and a 59% skilled mix, which is huge for a portfolio of this size. In addition, 21 of the... Read More »