Not-For-Profit Health System Exits Illinois SNF
Joe Shallow, Vice President of Prestige Group, represented a Midwest not-for-profit health system in its disposition of a 92-bed skilled nursing facility in Aledo, Illinois (Quad City area) to a private, for-profit owner, which Mr. Shallow sourced as well. Genesis Health System (not to be confused with for-profit Genesis HealthCare) had owned the facility which was built in 1970 adjacent to one of its hospitals. There was even an enclosed walkway built between the buildings in 2001. The facility was kept in good condition and reported a solid quality mix between 45% and 50%, pretty good in this industry. It also boasted a 16-unit memory care unit that was newly remodeled and featured all... Read More »
Genesis Occupancy Stabilizes, Finally
After several years of declining occupancy, operations seem to be stabilizing at the largest skilled nursing provider in the country. It has not been an easy past few years for Genesis Healthcare, or for the entire skilled nursing sector. But we always thought there would be some light at the end of the tunnel, and that nursing facilities would not go away, despite predictions of that for two or three decades. Genesis had seen its occupancy decline pretty steadily for several years. But in the 2018 fourth quarter, census actually increased by 90 basis points from the year-ago quarter, to 85.6% based on operating beds. Genesis also posted sequential and same-facility increases. The company... Read More »
Genesis HealthCare Buys and Divests
As it continues to improve its capital structure and rationalize its lease exposure, Genesis HealthCare has joint ventured with Next Healthcare Capital to buy 15 skilled nursing facilities with 2,147 total beds previously leased from Welltower located in Pennsylvania (6), New Jersey (4), Connecticut (3), West Virginia and Massachusetts. Genesis will own a 46% stake in the venture, and lease the properties, at presumably a lower rate than with Welltower, and there will be no escalators for the first five years. Welltower’s lease had 2% annual escalators. Next Healthcare appears to be willing to wait for that extra return, since Genesis has a purchase option beginning in 2026 to buy out the... Read More »
Genesis Healthcare Surges
Wow. It is amazing what a short analyst report can do to a stock, when it upgrades the recommendation to “Buy” with a price target that is 50% above the current price. That is what happened to Genesis Healthcare yesterday, after Chad Vanacore of Stifel wrote about the company and the improved outlook for skilled nursing in general. The previous closing price was $1.31 per share, and it surged by 26% to $1.65 in early trading on heavier than usual volume. Why? Signs of stabilization in the company’s core portfolio, improved reimbursement outlook for 2019 and beyond, a de-levering of the balance sheet and the divestiture of 55 facilities with unprofitable leases. That doesn’t mean it is... Read More »Schedule a demo
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