• Carnegie Capital Announces Latest Closings

    JD Stettin of Carnegie Capital has certainly had his hands full recently, having closed a couple of refinances in the Pacific Northwest, no easy task in the early days of COVID-19, we’re sure.   Mr. Stettin first sourced and structured a cash-out refinance of a 60-unit memory care community near Eugene, Oregon. Featuring a roughly 50-50 mix of... Read More »
  • PGIM Refinances Tennessee Senior Living Community

    PGIM Real Estate announced its latest transaction, with Executive Director Chris Fenton leading the way. It involved a $10.6 million HUD refinance of a senior living community in Ashland City, Tennessee. Built in 2015 with 100 beds in 80 units, the community provides assisted living and memory care services in a four-story building.   Thunderhawk... Read More »
  • Greystone Arranges HUD Construction Debt

    Working through HUD, Lisa Fischman of Greystone facilitated construction financing for an assisted living community to expand its Buffalo, New York-area campus. Originally built in 2003 with 110 beds in 84 units, the community is located on a 20-acre campus. Onsite amenities including a theater, physician’s office and beauty salon certainly... Read More »
  • Genesis HealthCare’s Shares Double in Value

    Leading up to Genesis HealthCare’s first quarter earnings release and conference call, the company’s share price took off. The rise started on May 22 when it jumped by 22% on high volume, but then it added another 35% on volume that was 10 times the average. In the course of four days, the price more than doubled, from $0.63 per share to $1.37... Read More »
  • Looking for Answers in the Lending Market: A Q&A with Alec Blanc of Monarch Advisors

    To get a sense of what is going on in the capital markets in this immediate post-COVID-19 world, we turned to Alec Blanc of Monarch Advisors for his own thoughts.   How has the lending environment changed from the beginning of the second quarter to now?  Overall, there is less debt capital available than there was prior to the COVID-19 crisis. ... Read More »
The Ensign Group Strikes Again

The Ensign Group Strikes Again

Ensign the Energizer Bunny, our pet name for several years now for one of two publicly traded companies that continue to make a GAAP profit, quarter after quarter, did it again. And they did it during what could have been a disruptive third quarter when they spun out their senior living operations and home health and hospice business into The Pennant Group. Obviously, it was not disruptive. To sum up some of the key numbers, there was a 33% year-over-year quarterly increase in income from operations, plus a 36% increase in net income to $27.8 million. This is after rent, depreciation and interest, or in other words, the real thing. And, net income per share increased by 25% year over year.... Read More »
The Pennant Group Debut

The Pennant Group Debut

The Pennant Group is The Ensign Group’s latest spin off. If history repeats itself, the new company will succeed. It has been three weeks since The Pennant Group was spun out of The Ensign Group as a separate publicly traded company. This is not Ensign’s first rodeo when it comes to successful spin outs. Five years ago, it spun out the majority of its real estate assets (and mostly skilled nursing) into CareTrust REIT, which has been among the leaders in shareholder return among healthcare-oriented REITs.  As Ensign grew its senior living and home health and hospice business, management decided that shareholders would benefit from higher valuation multiples if these assets were spun... Read More »
The Ensign Group Expands in South Texas with Senior Care Campus

The Ensign Group Expands in South Texas with Senior Care Campus

The Ensign Group may have just spun off its senior living assets into a new entity named The Pennant Group, but the firm can’t fully shake the seniors housing business, acquiring a senior care campus with 38 assisted living and 92 independent living units, along with 60 skilled nursing beds. Located in the town of Harlingen, the campus complements five other Ensign operations in south Texas, including another 82-bed skilled nursing facility in Harlingen that the company acquired from The Evangelical Lutheran Good Samaritan Society in 2009. Ensign acquired both the operations and real estate in this transaction, bringing its portfolio to 198 skilled nursing operations, 27 of which also... Read More »
The Ensign Group to Split Up

The Ensign Group to Split Up

Talk about a surprise move. The Ensign Group announced that it will be spinning out its home health and hospice business and substantially all of its senior living operations, plus its mobile diagnostic and clinical lab operations, into a separate publicly traded company called The Pennant Group. Ensign will become a stand-alone skilled nursing company but will also continue to own the real estate of 28 of the senior living communities and lease them to Pennant. The remaining 23 senior living properties are leased from third parties. While it makes sense for Ensign to want to focus just on skilled nursing because the business is getting increasingly complex, we are not sure why they want... Read More »