• 60 Seconds with Swett: Getting Realistic with New Development

    The positive mood at the NIC Fall Conference was contagious, as dealmakers were looking forward to a potential record-breaking fourth quarter. We at LevinPro are also gearing up to cover a new elevated level of M&A activity and pricing in the coming months, with our updated valuation tool better accounting for today’s market and the estimated... Read More »
  • NHC Responds to NHI

    National Healthcare Corporation, the tenant of 32 of National Health Investor’s skilled nursing/senior care facilities and three independent living communities, is disputing NHI’s determination of default after the landlord formally notified the operator that it was in default and must cure the default within 30 days to avoid an Event of... Read More »
  • REIT Acquires High-Quality Continuum of Care Community

    Blueprint facilitated the sale of a Class-A seniors housing community in Jasper, Georgia. Built in 2022, The Lodge at Stephens Lake includes 83 units of independent living cottages, assisted living and memory care. It is adjacent to a large active adult development and benefits from significant planned residential and commercial growth. At the... Read More »
  • Legend Senior Living Adds Allentown-Area Asset

    A Class-A, well performing property outside of Allentown, Pennsylvania, traded to a joint venture between Legend Senior Living and a new capital partner. Legend previously operated The Vero at Bethlehem, which opened in July 2023 and stabilized within 18 months. At the time of marketing, the 124-unit assisted living/memory care asset achieved... Read More »
  • CFG’s Senior Care Financing Activity

    Capital Funding Group financed more than $86 million across six transactions from early to mid-August. The transactions supported two memory care communities, four skilled nursing facilities, and one psychiatric hospital in Missouri, California, Tennessee, Texas and Virginia on behalf of nationally recognized borrowers, one of which is a... Read More »
The REIT Recovery

The REIT Recovery

Back in mid-February, it looked as if the world of healthcare REITs had collapsed, with no end in sight. Almost every healthcare REIT hit a new low in a span of a few days, but it has been a vastly different story in the six months since then. The average healthcare REIT stock has jumped in price by about 50% since mid-February, with a range between 27% (Care Capital Properties) and 78% (Sabra Health Care REIT). While that means the higher-yielding REITs have dropped down from double-digit yields, the range of dividend yields is still a healthy range of 4.1% to 8.5% (at least for investors). Price pressure will certainly pop up again if the Fed does increase rates next month, but no one is... Read More »
Continued Uncertainty At HCP

Continued Uncertainty At HCP

Lauralee Martin is out as CEO, but who will be in remains a mystery. The only thing surprising about the “sudden” announcement that Lauralee Martin stepped down as CEO of HCP, Inc. was that the effective date of her departure was also the announcement date. Now, we don’t want to read too many tea leaves into the situation, but remember that she came into the CEO position from the Board nearly three years ago in a tumultuous dumping of the previous CEO. She already had a top job at another real estate company and didn’t really need the aggravation. But she steered the REIT through another tumultuous period with, first the two lease adjustments, and then the in-process spin-off of the $6... Read More »

Another Recession-hit CCRC sells

Nearly a decade on from the housing market collapse in 2007 and despite a relatively strong comeback in the sector, we are still writing about CCRCs just recovering from a drastic drop in entrance fee receipts in the throes of the Great Recession. That being said, three years after filing for Chapter 11 bankruptcy protection, a 223-unit CCRC located in the World Golf Village of St. Augustine, Florida, recently sold in auction to a partnership between LCS and HCP. Operated by LCPS Management, the not-for-profit CCRC opened in 2001 and reached 99% occupancy in 2006 and was 94% occupied in 2008 following a 15-cottage independent living expansion. However, during the Great Recession, more... Read More »
Continued Uncertainty At HCP

Controversy Among The REITs

Opinions and controversy are all part of the game, but sometimes it can go too far. Some people think I speak my mind a little too frequently, but after 30 years in the seniors housing and care sector, it is hard not to have a lot of opinions. I have always thought that with so much news out there, and so much rehashed news, people want to hear what someone really thinks. It may not be popular, but if it based on experience and a lot of thought, well, then maybe it is worth something. Controversial? Sometimes, at least I hope so. But perhaps not as controversial as the current spat among some healthcare REITs about their decisions to spin off their skilled nursing portfolios, or not. For... Read More »
Continued Uncertainty At HCP

Changes at HCP, Brookdale, Genesis

Earnings season brings more than just earnings to the surface for some companies. What can I say? It has been quite a week, and we are only at Wednesday. On Monday subscribers received my initial take on HCP’s announcement about spinning out its HCR ManorCare portfolio into a new REIT. Maybe management thought it was necessary, but I really think we are going to be hearing some negative news in the future, and if so, it will make HCP’s decision look better. Just look at the performance of Genesis Health in the first quarter, which sent its share price plummeting by 20% yesterday. One problem is that with the HCR portfolio representing more than 25% of HCP’s revenues, with it gone,... Read More »