Five Star Not Shining
Hindsight is usually 20-20, and in the case of Five Star Senior Living, looking back two years, the company should have accepted the offer from Gemini Properties and the Thomas brothers of Senior Star, who offered to pay $325 million for 33 owned Five Star communities. They had already accumulated more than 6% of the company’s stock, an investment they most likely regret. But management, and really the then-controlling shareholder, the late Barry Portnoy, wanted nothing of it. In fact, Mr. Portnoy announced a tender offer to buy 10 million shares of Five Star at $3.00 per share to enhance his controlling position. That’s an investment where his estate would like a re-do. The Gemini/Senior... Read More »
Senior Care Stocks Swoon….Again
The 2017 Trump rally has left senior care and healthcare REIT stocks behind. It looks like the so-called Trump stock market rally is continuing into 2018. Weirdly, several senior care stocks shot up in the first day of trading yesterday. Where were investors last year? Unfortunately, 2017 was about as bad as it gets for our sector. Only one company posted an increase in price, and that was Kindred Healthcare, which is actually exiting our sector with its last sales of its SNFs. So, everyone else declined, and almost all of them by double digits, in a year when the rest of the market posted extraordinary returns. The NASDAQ Composite was up 28.2%, the Dow was up 25.1% and the S&P 500... 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 »National Health Investors Partners Ravn Senior Solutions
National Health Investors continues to grow at a steady pace. In the last 10 months, the REIT has publicly announced seven transactions, comprising 43 senior care or seniors housing properties. Just last month, NHI acquired five seniors housing communities operated by Senior Living Management. Now, it is purchasing two assisted living/memory care communities in North Carolina and entering into a new operating relationship at the same time. The adjacent communities are located in the town of Hendersonville (about 20 miles south of Asheville), with one being built in 1999 with 26 AL and 13 MC units, and the second opening in 2002 with 47 AL units. NHI funded the transaction with borrowings... Read More »Schedule a demo
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