Senior Care Stocks Swoon….Again
The 2017 Trump rally has left senior care and healthcare REIT stocks behind. It looks like the so-called Trump stock market rally is continuing into 2018. Weirdly, several senior care stocks shot up in the first day of trading yesterday. Where were investors last year? Unfortunately, 2017 was about as bad as it gets for our sector. Only one company posted an increase in price, and that was Kindred Healthcare, which is actually exiting our sector with its last sales of its SNFs. So, everyone else declined, and almost all of them by double digits, in a year when the rest of the market posted extraordinary returns. The NASDAQ Composite was up 28.2%, the Dow was up 25.1% and the S&P 500... Read More »Senior Star’s Five Star move
The Thomas Twins of Senior Star certainly had the right idea. Remember, they proposed buying all the owned properties of Five Star Senior Living for about $325 million, which we always assumed was an opening offer. Five Star has now agreed to sell just seven of its assisted living communities with 545 units to its REIT big brother, Senior Housing Properties Trust, in a sale/leaseback transaction. The price of $112.4 million comes to $206,200 per unit, and using that value (which we believe is high for the entire owned portfolio) on the remaining 26 owned properties with 2,666 units results in an additional $549 million in value. Five Star’s market cap, even after the nearly 40% jump in its... Read More »Senior Care Market Peak and Bottom
The private market valuation may have peaked, but the public market may have seen its low. As you know, I have been vocal about the acquisition market being at a peak for most of this year, at least when it comes to pricing. It just seems hard to imagine cap rates declining further with a rate hike looking like a reality….at least, according to consensus thinking. But the public markets are a different story. It has been a real roller coaster, but mostly down. But, and this is a big but, the downward spiral was so bad we just may have hit bottom. And November 13 is looking like the bottom, at least for now. On the provider side, both Kindred Healthcare and Genesis Health hit new lows on... Read More »Schedule a demo
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