• Genesis HealthCare’s Legacy Liabilities Lead to Bankruptcy Filing

    Genesis HealthCare has filed for Chapter 11 bankruptcy protection, listing its 298 affiliated holding companies, ancillary businesses and insurance vehicles in its submission to the U.S. Bankruptcy Court for the Northern District of Texas Dallas Division. It is one of the largest skilled nursing operators in the country and operates 218... Read More »
  • Cindat Capital Management Invests in Colorado Community

    Cindat Capital Management, a middle-market real estate private equity platform focused on seniors housing and opportunistic investments, announced its first investment from its Senior Housing Credit Platform. It was a unitranche debt investment in The Pearl at Boulder Creak, a 116-unit, Class-A independent living and assisted living community... Read More »
  • MedCore Divests to Publicly Traded Healthcare REIT

    Ziegler announced its role as exclusive sell-side financial advisor to MedCore on the sale of Parkview on Hollybrook, a 189-unit rental CCRC in Longview, Texas. The property has been on a long road to stabilization. It was originally bought in a bankruptcy auction in 2016 for $20.7 million by Thrive FP when it was in the middle of development. 12... Read More »
  • Forbright Bank’s H1 Activity

    Forbright Bank reported its activity for the first half of the year from its healthcare and HUD lending teams, announcing more than $500 million in loans closed for acquisitions, recapitalizations, working capital, and HUD financings for healthcare providers across the country. One of the largest transactions was a $60 million revolving loan to... Read More »
  • Large SNF Portfolio Secures Financing

    MONTICELLOAM, LLC announced the closing of $218.3 million in combined bridge, mezzanine, and working capital financing for 18 skilled nursing facilities across Kentucky. The transaction includes a $179.3 million senior bridge loan and a $29 million mezzanine loan, which the sponsor plans to use to restructure and upsize the existing debt on the... Read More »
National Health Investors Cuts Dividend

National Health Investors Cuts Dividend

Even though National Health Investors didn’t have to cut its dividend, management made the prudent decision to reduce its quarterly dividend by 18% to 90 cents a share. The yield had been at the high end of its peers at 6.6%, and now it will be 5.4%. Even though at least one analyst last week came forward saying he didn’t think a cut would be made, the market shrugged off the news, with NHI shares dropping just 1.26%. Perhaps they should have gone bigger.  Coincident with the dividend announcement, NHI also announced one of its major tenants, Holiday Retirement Corporation, was going to defer $600,000 in monthly rent for May through July. NHI will take that deferred... Read More »
National Health Investors Stabilizing

National Health Investors Stabilizing

National Health Investors (NHI) was the last of the healthcare REITs to report earnings in what was a very informative earnings season. We have already reported that the REITs and their SHOP portfolios have begun the long-anticipated turnaround as occupancy begins to rebound. Operating costs will be another matter, and it will take a few years to return to normal, whatever that is.  NHI’s three major seniors housing tenants have appeared to stabilize, at least from an occupancy perspective. Bickford Senior Living, which has been responsible for the majority of cash rent deferrals during the pandemic, boosted sequential occupancy by 180 basis points in April to 76.3%. That... Read More »
Promising Census Signs From National Health Investors Update

Promising Census Signs From National Health Investors Update

We are still waiting for that first sign that the seniors housing and care recovery has truly begun. There were some encouraging signs from Welltower’s SHOP portfolio when its census started to rise in the later weeks of March. But so far, that is it. Earlier this month, NIC reported that average occupancy at seniors housing communities fell to a new record low in the first quarter, to 78.8% from 80.6% in the fourth quarter.  National Health Investors also recently provided an update regarding its average occupancy and monthly contractual cash collections. Even though the REIT did not report an increase in census at its three major seniors housing operators, the decline has slowed... Read More »
Two REITs Close Couple of Loans

Two REITs Close Couple of Loans

A couple of REITs in good financial shape (and still open to making new investments) announced a couple of loans closed for senior care facilities. CareTrust REIT completed a $15 million secured mezzanine loan for Next Healthcare’s acquisition of a nine-property skilled nursing portfolio with approximately 1,000 beds in Virginia. The loan came with a five-year term and annual interest rate of 12%, with CareTrust funding it from its $600 million unsecured revolving credit facility. White Oak Healthcare Finance was the senior lender on the deal. Then, National Health Investors funded a $22.2 million construction loan for the development of a 110-unit senior living community in Sussex,... Read More »
Senior Care Stocks Stay High After Vaccine News

Senior Care Stocks Stay High After Vaccine News

After Pfizer’s vaccine announcement on November 9, pretty much every publicly traded senior care provider and REIT saw their share prices jump significantly. We believe that much of the exuberance was mainly from the removal of uncertainty surrounding both the vaccine and the election, but as we said earlier this month, it is not like no one thought a vaccine would not be available in the months ahead. And there was still the fact that the Pfizer vaccine needs to go through the FDA approval process, not to mention manufacturing tens of millions of doses, and then distributing them.  But we also wondered if investors had gotten a little ahead of themselves,... Read More »