Another Texas Transaction for Blueprint Healthcare Real Estate Advisors
Blueprint Healthcare Real Estate Advisors has developed an affinity for the Texas senior care M&A market, closing six transactions in the state in the last year, including as recently as January, when the firm closed the sale of a 120-bed skilled nursing facility in Whitehouse for $6.42 million, or $53,500 per bed. Now, hired to help a large company divest what it viewed as non-core asset, Tim Cobb and Ben Firestone of Blueprint arranged the sale of a 75-unit/141-bed skilled nursing facility in San Antonio. Included on the campus was a 17-bed assisted living unit, but the facility was struggling operationally, with just a 34% census at the time of the sale. The Ensign Group was the... Read More »
Ensign Group Shares Plunge
The Ensign Group was the first of the operating companies to report fourth quarter earnings, and the company took a stumble. Earnings were significantly below estimates because of some difficulties transitioning acquisitions, and were also impacted by labor costs and increasing healthcare costs. As a result, management lowered its guidance for 2017 for both revenues and earnings. In addition, occupancy was lower at 74.6% and same-facility occupancy was down nearly 150 basis points year over year. Occupancy at Ensign has historically been lower than its peers because it acquires so many underperforming properties with low occupancy rates that it expects to turn around. We have often... Read More »
Struggling skilled nursing facilities sell in Texas
We have seen a number of skilled nursing facilities sold this month that have seen better days, or at least hope to. The theme continued at the start of February, two SNF transactions in Texas were announced in succession involving struggling facilities. First up, The Ensign Group purchased a facility in San Antonio that was just 34% occupied. The campus, which features 124 skilled nursing and 17 assisted living beds, is subject to a long-term ground lease. There is some promise however, as the facility is adjacent to a 400-unit independent living community, a population for which it hopes to provide care and services. Ensign acquired both the real estate and operations, which it added to... Read More »
Changes already for 2017
Welltower has a management shuffle, and The Ensign Group expands its real estate ownership. Well, first of all, Happy New Year. I am not sure if it is going to be all that happy, bumpy yes, happy, it will depend on your perspective. For the first act of the new Congress to upend their own ethics rules, and then to rescind what they just passed, well, one would think they have more important things to do. Perhaps they are waiting until January 20. Meanwhile, we are heading into a year of uncertainty as well, with the full impact of rising interest rates not felt yet, even though financing activity seemed to take a breather in December. The only big news was that at year-end The Ensign Group... Read More »Schedule a demo
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