• National Health Investors Issues Another Update

    National Health Investors is continuing its steady census progress, but the rent deferrals for Bickford Senior Living just will not end. The silver lining is that the deferral amounts are decreasing, from $3 million in both March and April of this year and $2 million in June. Now, the two parties have agreed to $1.5 million in rent deferrals per... Read More »
  • Another Family Owner/Operator Exits the Industry

    As Covid-19 has led to overall decreases in senior housing occupancy levels, Sherer Management joined several of its peers by closing down its multigenerational family business with the sale of its last two CCRCs in Iowa.  These properties include a total of 188 beds at Rose Vista in Woodbine and Longview Home in Missouri Valley.... Read More »
  • HJ Sims Refinances Michigan Provider

    It took a couple of tries, but HJ Sims arranged $41.9 million in financing for Sunset Retirement Communities, a multi-campus, not-for-profit senior living provider in Michigan. The company has grown its holdings over the past decade, starting development on its Jenison campus in 2009 and completing it in 2015. Then, after completing a market... Read More »
  • Recent Senior Care M&A Deals, Week Ending June 18, 2021

    Senior care M&A is soaring back this month across all sectors. Check out our recent M&A deal chart. Long-Term Care   AcquirerTargetPrice Beacon Health10 skilled nursing facilities in Iowa$24.2 million Regional operator/private capital providerRose Vista in Woodbine and Longview Home in Missouri ValleyN/A Ciena HealthcareLincoln... Read More »
  • Drinking the Kool-Aid in Washington (State), Again

    The people of the state of Washington are getting closer to having to make a decision about a new payroll tax to fund a “long-term” care benefit, that is anything but long term. The 58-cent tax withholding for every $100 of salary and bonus may not seem like much, but the benefit is not much either.  This reminds us (sort of) of the Class... Read More »
Missing Out On Bad News

Missing Out On Bad News

A vacation is a horrible thing when bad news hits the market. It is a horrible thing to go on vacation when all sorts of things are happening in the market, but such was the case last week. What I missed was the roll-out of earnings and the very disappointing occupancy numbers. For some, they were worse than the weak results posted for the second quarter by NIC. The ubiquitous villain was the tail of last winter’s flu season. But it seems the seniors housing sector is surviving on a two steps backward, one step forward cycle, and not making up much ground. What still amazes me is that the warning signs were there in abundance well over a year ago, yet too many people ignored them. Leading... Read More »
Missing Out On Bad News

No Deal For Brookdale Senior Living Yet

Brookdale Senior Living remains in a rut, and the Chinese option may be disappearing. For some reason, Brookdale Senior Living has kept out of the news recently, which is a good thing. What’s not so good is that its share price continues to be stuck in a rut. What also is not so good is that with the recent second quarter occupancy numbers out of NIC, we have to assume that given Brookdale’s size, their occupancy levels contributed to the downward trend in occupancy. Also not good. Everyone continues to wait on news of a buyer for Brookdale to come forward. The Chinese card seems to be disappearing given that the U.S. authorities are scrutinizing Chinese sponsored acquisitions more... Read More »

Seniors Housing Occupancy Weakens

NIC announced their second quarter occupancy and development trends, and unfortunately it was not pretty. After a first quarter which suffered from the ubiquitous flu season census declines, we had expected, at worst, a small sequential decline in the second quarter, but perhaps a small 10 to 20 basis point uptick, maybe even better. For majority assisted living in the top 31 MSAs, for those properties open for two years (stabilized properties) average occupancy dropped 50 basis points from the first quarter to 88.9%, but down 80 basis points from the year-ago quarter. Historically, the average second quarter sequential decline is 10 basis points, and the current 50 basis point drop was... Read More »

Investor Sentiment at the NIC Conference

Last week’s 60 Seconds with Steve video greeted everyone attending the NIC Conference in San Diego and asked what the sentiment might be during the conference. In years past, you could tell we were in a bull market with all the deal making going on in public, the exuberance of the crowds and the general noise level. Although the stated attendance was approximately 1,500, it did seem a little smaller than that, without the usual crowds in the lobby bar for one last nightcap and another round of industry gossip. The overall sentiment was one of caution, and this was especially true in the skilled nursing side of the business (see today’s 60 Seconds video). As we all know, the American Health... Read More »
Missing Out On Bad News

Assisted Living Occupancy Woes….Again

According to NIC data, assisted living occupancy dropped in the fourth quarter, which was not a good way to end the year. I don’t like to start the new year off with an “I told you so,” but I will. Fourth quarter occupancy trends were just released by NIC, and let’s just say they were disappointing. Surprising? No, but disappointing? Yes. The fourth quarter is usually looked upon as a solid quarter, with occupancy increases that are necessary to fend off declines in census from what can be bad flu seasons in the first quarter. Until recently, some providers were denying that the jump in development was impacting their census. But privately, we knew there was a different story, even with... Read More »