• “Going Concern” Problem For Capital Senior Living

    Perhaps in an effort not to rattle the market, Capital Senior Living filed its first quarter 2021 10-Q after the markets closed on Friday, May 14. Perhaps they thought no one would notice as many were out celebrating the removal of their masks. Not that it should have been a surprise, but in the filing the company issued the dreaded... Read More »
  • Canadian Seniors Housing Market

    The Canadian seniors housing market has fared a bit better than its U.S. counterpart during the past year or so, but it also started in a better place. Take the Canadian SHOP portfolio of Ventas. It currently has 74 communities that operated in the first quarter 2021 with net operating income of $171.8 million, or just over $2.3 million per... Read More »
  • SavaSeniorCare Sells a Couple of Illinois SNFs

    SavaSeniorCare sold a couple of its Illinois properties, part of its plan to transfer the operations of some 48 facilities in its portfolio by the end of 2021. The deal represents the company’s last two properties in the Land of Lincoln.  First, it is handing over the keys of its 74-bed subacute/skilled nursing facility in Mount Vernon, Illinois,... Read More »
  • Monarch Advisors Secures Revolving Line of Credit

    Alec Blanc of Monarch Advisors closed a revolving line of credit for the operator of five skilled nursing facilities in southern Illinois, the purpose being to fund working capital costs across the portfolio. The borrower is based in Chicago and has operated the buildings for more than 10 years. They total about 600 beds and tended to be older,... Read More »
  • Recent Senior Care M&A Deals, Week Ending May 14, 2021

    Senior care M&A activity seems to have picked up a bit this month. Here is our latest deal chart. Long-Term Care   AcquirerTargetPrice Bickford Senior Living6 seniors housing communities$52.9 million Fortress Investment Group, LLC5 assisted living communities$64 million Crest Healthcare GroupNature Trail Health Care Center &... Read More »
HCP, or Healthpeak Properties, Continues Brookdale Restructure

HCP, or Healthpeak Properties, Continues Brookdale Restructure

As if a new name wasn’t enough news. First, along with its third quarter earnings results, HCP, Inc. announced that it is changing its name to Healthpeak Properties, Inc. and will trade on the New York Stock Exchange under the new name and ticker symbol “PEAK” on November 5. But then, the REIT announced a couple of large transactions, including the sale of a 46.5% interest in a portfolio of 19 Brookdale Senior Living-operated properties, an amended acquisition of 13 CCRCs from Brookdale and the divestment of the remaining interest in its United Kingdom holdings. Exits from the U.K. are all the rage these days. Starting with the Brookdale sale, HCP, sorry, Healthpeak agreed to form a new... Read More »
Gloves Come Off in Brookdale’s Proxy Fight

Gloves Come Off in Brookdale’s Proxy Fight

The proxy cards are in the mail to Brookdale Senior Living’s shareholders for the vote at the annual meeting, to be held on October 29, and it looks like CEO Cindy Baier has taken the gloves off. Brookdale has been fighting shareholder Land & Buildings’ nominee for a board position, Jay Flaherty, for many weeks. But now they are bringing up some of Mr. Flaherty’s past transgressions which, according to Brookdale, make “him unfit to serve as a member of Brookdale’s Board.” These transgressions include some foul play in 2011 when he was CEO of HCP, Inc., which resulted in a $101.7 million judgment against HCP, for which the court stated that HCP engaged in “fraudulent conduct with the... Read More »
The Great Development Slowdown

The Great Development Slowdown

Everyone is talking about development slowing down, but over development is just part of the problem. We have been hearing it for a few months: seniors housing development is slowing down, based on fewer new construction starts. We have heard it from NIC MAP, from HCVenTower, and now Brookdale Senior Living. They are all saying that in many of their markets, they are seeing light at the end of the over-development tunnel. Maybe. It is one thing if new starts are declining, but it is quite another to fill the current empty units plus the new supply that is currently opening, and going to open. Let’s just say, we are not out of the woods yet, and census is only one part of the problem. Not... Read More »
Brookdale Activists Strike Again

Brookdale Activists Strike Again

We disclosed last week that activist investor Land & Buildings (L&B) had nominated Jay Flaherty, former CEO of HCP, Inc., and Jonathan Litt (founder of L&B) for board election at the 2019 annual meeting of Brookdale Senior Living. L&B has just sent an open letter to Brookdale shareholders providing more rationale for the election of these two candidates. Apparently, L&B hired Green Street Advisors to value Brookdale and its real estate assets, and to provide an opinion as to the feasibility of a PropCo/OpCo split of the company, something Litt has been pushing for quite a while now to enhance shareholder value. Not surprisingly, preliminarily they determined that... Read More »
HCP, or Healthpeak Properties, Continues Brookdale Restructure

May’s M&A Deal Boom

Do buyer’s see a bottom? That is one explanation for the incredibly busy start to May, which has seen 21 acquisitions announced, so far, according to our M&A database DealSearchOnline. And that does not include deals that may bubble to the surface in the coming weeks. So, with seniors housing occupancy still relatively low and the labor supply and cost problem not diminishing, why are so many increasing their interests in the senior care market? Those problems may well be the answer, if buyers believe we are at an operational bottom for the industry. It seems a number of big companies are betting that’s the case, with a number of them announcing large acquisitions and initiatives that... Read More »