Mainstreet Does Canada….Again

Perhaps one of the most dynamic firms in the senior care market, Mainstreet is at it again with a new publicly traded platform in Canada. Its last Canadian entity was sold to Health Care REIT (now Welltower) last year for a tidy profit. Using its recently announced acquisition of a portfolio of skilled nursing facilities in the Chicago market, Mainstreet has agreed to do a reverse merger with a shell company that is publicly listed in Canada that, when completed, will take the new name of Mainstreet Health Investments (MHI). And guess who will be the CEO of the new entity? None other than Zeke Turner, Mainstreet’s founder and CEO. MHI plans to buy skilled nursing, assisted living and... Read More »

Slumping Ventas

Investors did not like what they heard about Ventas for the third quarter, despite an earnings beat. So, when we first heard that Ventas was announcing that third quarter earnings were going to exceed estimates, we thought, ho-hum, so what else is new, they always beat estimates. The press release was glowing about all the accomplishments during the quarter. They revised guidelines for the full year slightly upward. I didn’t get a chance to listen in live to the earnings call, but I did notice how the share price dropped by 5%. What, on an earnings beat? And then it dropped a little more. It was the revenue miss and concerns about growth that sent investors to the exits. Since then, there... Read More »

The Name Game

In the last couple of days, two big players in the seniors housing industry announced name changes. First, Thomas DeRosa, CEO of Health Care REIT, announced in a letter to employees that the REIT would be renamed Welltower. Despite this change, the company will still trade under its ticker symbol “HCN” on the New York Stock Exchange. And then following this announcement, the Assisted Living Federation of America (ALFA) unveiled its new name, Argentum. Derived from the Latin for “silver,” the new brand will reflect the organization’s expanded focus on “expanding senior living” for the “silver generation.” While Health Care REIT’s announcement seems to have come out of left field, the ALFA... Read More »

Health Care REIT looking North, again

In its existing RIDEA joint venture with Revera, Inc., Health Care REIT purchased Regal Lifestyle Communities, a Toronto-based operator of 23 independent living communities with more than 3,600 units. The joint venture, with HCN owning 75% and Revera 25%, will pay CAD$12.00 per share (a 27.1% premium), or approximately US$623 million ($173,100 per unit), for the portfolio, assuming CAD$359 million (US$ 291.9 million) of debt with a weighted average interest rate of 3.8% and an average maturity of four years. The initial cash yield is expected to be 6.1%, with HCN investing US$248.8 million in the transaction. The communities, located in Ontario (13), Quebec (7) and one each in British... Read More »

The largest just got larger

The largest provider of skilled nursing in the country, Genesis HealthCare, increased its facility ownership to 23% of its inpatient sites with the acquisition of 24 skilled nursing facilities with 3,056 total beds for $240 million, or $78,500 per bed. The facilities, owned by Revera, Inc. and generating approximately $280 million in 2014 revenue, are located in New Jersey (8), Vermont (5), Washington (3), Connecticut (2), Massachusetts (2) and one each in Maryland, Virginia, New Hampshire and Rhode Island. Under the agreement, Genesis will acquire the real estate of 20 of the 24 facilities, and will enter into long-term lease agreements with Health Care REIT for the remaining four. In the... Read More »