Genesis’ Texas Exodus
Genesis HealthCare is nearing its total exit from the state of Texas, completing the sale of 16 skilled nursing facilities (15 owned and one leased) in the state. Genesis had also previously exited the operations on another leased facility and now has just seven SNFs under operation in Texas. All are expected to be sold in the fourth quarter of 2018 as part of a greater process by Genesis to divest underperforming or non-strategic assets. Aggregate revenues and EBITDA for the entire Texas portfolio (24 facilities) was approximately $175 million and $7 million, respectively. The exit is expected to reduce indebtedness by about $94 million, a significant step for the company that is still... Read More »
Genesis Healthcare Close to Bottom?
As a result of divesting a few dozen of its skilled nursing facilities, as well as negotiating rent reductions on others, Genesis Healthcare posted a decent second quarter. At least, decent for them given the past performance. It ended the quarter with 385 SNFs and 23 ALFs, but with 88% of them still leased. While we applaud management for shrinking the size of the company, we still believe they have a long way to go to really get a handle on what is going on locally. With the existing leases, they may not get there. Investors liked the results, pushing the share price up by 10% over two days, with most of that coming the day of the earnings announcement. Management is positive about the... Read More »
To Be Public Or Not
There are a lot of people who do not believe seniors housing and care companies should be publicly traded. It is not appropriate to try to manage quarterly revenues and profits when you are taking care of older, frail residents. And don’t forget the earnings disruptions that can be caused by new developments and the ongoing depreciation expense if you own your real estate. It is just difficult to please investors and analysts with all the variables, including external ones that you have no control over, or so the argument goes. And then there is the roller coaster of daily stock prices. Take Genesis Healthcare, as an example. This past Monday, its price plunged by as much as 19% on trading... Read More »
The Sabra-Genesis Sales Keep On Coming
Many of Blueprint Healthcare Real Estate Advisors’ closings this year have featured a publicly traded REIT divesting skilled nursing facilities (a theme in the past year), which was yet again the impetus for its latest deal. Christopher Hyldahl, Ben Firestone, Gideon Orion and Michael Segal worked on behalf of Sabra Health Care REIT to sell a portfolio of 12 skilled nursing facilities in New Hampshire (7) and Florida (5). The deal is part of Sabra’s strategy to reduce its exposure to Genesis Healthcare. Another tranche of 20 properties in Indiana, Kentucky and Ohio sold earlier this year (also handled by Blueprint) for $103.3 million, or about $55,400 per bed. Now, Sabra has thrown off 12... Read More »Schedule a demo
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