• Seniors Housing M&A Market Comes to Life

    Welltower’s recent announcement of two portfolio sales at low cap rates during the pandemic bodes well for the market. It has been a quiet past few weeks in the seniors housing M&A market. Last week was the first time we can remember when we have gone an entire week without one announced acquisition. That leaves us worried as to the... Read More »
  • Newmark Knight Frank Handles Welltower’s $1.3 Billion Sale

    There were rumors circulating last month of a major portfolio sale by one of the healthcare REITs, and given the dearth of deals in May, we clung on to the promise of it. Well, on June 1, Welltower announced not one, but two large seniors housing portfolio dispositions, along with a major medical office building sale, all combined for a roughly... Read More »
  • Two REITs Provide COVID and Census Updates

    Welltower recently disclosed what has been happening at its large seniors housing operating portfolio (SHOP), and we again give them credit for being transparent with investors as to the operating performance of its customers. In the second quarter through May 29, its SHOP portfolio has seen occupancy decline by 420 basis points. That’s the... Read More »
  • May’s M&A Meltdown

    The M&A statistics are in for May, and it was a doozy. Only 19 seniors housing and skilled nursing deals were publicly announced during the month, nearly half of which coming from the first quarter earnings reports of several public companies. Without those, we would have barely made it to double digits. You have to go back to July 2017 for... Read More »
  • Blueprint Closes Another LTC Properties Sale

    After representing LTC Properties in its five-phase sale of a 2,500-bed skilled nursing portfolio, Blueprint Healthcare Real Estate Advisors went back to the well, handling LTC Properties and Senior Lifestyle Corp.’s sale of two large seniors housing campuses in Arizona. The deal closed on April 21, with Humair Sabir, Amy Sitzman and Jacob Gehl... Read More »
Big Sale by New Senior Investment Group

Big Sale by New Senior Investment Group

New Senior Investment Group announced it has entered into an agreement to sell its portfolio of 28 assisted living and memory care communities in 14 states with 2,840 units for $385 million, or $135,560 per unit. These are managed by six different operators.  This group of communities has dragged down New Senior’s performance, as occupancy and cash flow has been decreasing over the past year. Overall occupancy for the assisted living and memory care portfolio is 78%, but nine of the communities (transition assets) had occupancy of just 68.7% in the third quarter with a cash NOI margin of just 0.5%. The other 19 had an average occupancy rate of 81.3% and a cash NOI margin of 21.5%.   The... Read More »
How Have the REIT Stocks Performed in 2019?

How Have the REIT Stocks Performed in 2019?

Last week, we discussed the stock performance of the seniors housing and healthcare providers. Now, it’s the healthcare REITs’ turn. Overall, it was a good first half of the year, with all of them posting price increases, with the exception of Senior Housing Properties Trust, reflecting its Five Star problems. Its share price tumbled by 29.4%. The top performer was New Senior Investment Group, but it came off a terrible 2018 (down 45%) and still trades below what it did 18 months ago. The star of the year, so far, is CareTrust REIT which is up 28.8% after being the second-best performer last year with a price increase of 10%. And then there is HCVenTower, otherwise known as the Big Three,... Read More »
New Senior Divests Struggling Pittsburgh Property

New Senior Divests Struggling Pittsburgh Property

With its Pittsburgh, Pennsylvania senior living community in danger of losing its license, New Senior Investment Group decided to divest the troubled asset, selling to an area not-for-profit for nearly half of what it originally paid for the property in 2013. The community’s operator, Oregon-based Blue Harbor Senior Living, had received a number of violations and operated it on a provisional license that meant that only 80 of its 164 units could be occupied. That could make anyone a motivated seller. So, six years after SNR acquired the community from the original developer for approximately $15.6 million, they decided to sell to Vincentian Collaborative System, a faith-based... Read More »
KeyBank Tops HUD Rankings

KeyBank Tops HUD Rankings

There’s a new king of the HUD 232 Lean program. KeyBank Real Estate Capital unseated long-time leader Lancaster Pollard (which had topped the list since 2010 in terms of dollar volume) after closing $812.7 million in loans in FY2018, a record for single-year volume in the program and up 144% from the firm’s FY2017 volume. In that time, KeyBank also closed the largest single-asset HUD loan in history when it secured a $127 million loan for a 499-bed skilled nursing facility in New York City. Lancaster Pollard still reported an impressive $610.4 million in loan closings (good enough for second place), while Capital Funding took third place with $466.0 million. Not resting on those impressive... Read More »
Griffin-American and Greystone

Griffin-American and Greystone

A month ago, we learned of a couple of large divestments by New Senior Investment Group, in a move to bring its share price up to where management believes it should be, by increasing the share of its independent living portfolio, decreasing its Holiday Retirement exposure, and reducing its concentration in the three states of Florida, Texas and California. We have also just learned that Cody Tremper and Mike Garbers of Greystone represented SNR in the transaction. Spread out across Central Florida, the portfolio consists of nine properties and were all formerly operated by Holiday Retirement. However, operations have dropped off since Holiday stopped having live-in managers at its... Read More »