Brookdale Senior Living Buy-Out in Limbo
It has been far too quiet on the Brookdale Senior Living buy-out front, other than its share price continues to slide as some investors may be giving up on a major capital event or sale of the company at a price point that interests them. The shares are trading at their lowest levels since early January, which, counterintuitively, may make it easier to get a deal done, if that is what the Board wants. We are still sticking with our opinion that only “stupid money” would pay the $20 to $25 per share for the company that several analysts have been saying is the true sum-of-the-parts value, which is why the price needs to come down so that a buyer would be able to offer some sort of premium,... Read More »
Blackstone, now Ventas, Vying for Brookdale Senior Living
With rumors that Blackstone was out of the bidding for Brookdale Senior Living, it was then leaked that Ventas was in discussions. The saga never ends. We are certainly in weird times. Last week, it appeared that Blackstone was out of the bidding for Brookdale Senior Living, or at least a part of it. Then, it was leaked late Thursday that Ventas was in discussions to buy all or part of Brookdale. What happened the next day? Brookdale’s stock dropped 6.5% on volume of more than 19 million shares, or almost five times the average. So, did investors think Ventas would not pay as much as Blackstone would, and were disappointed? Perhaps, but then after the long weekend, Brookdale jumped back up... Read More »
Genesis HealthCare, Kindred and Brookdale Working With REITs
It was not easy, but Genesis HealthCare, Kindred Healthcare and Brookdale Senior Living have worked with their REITs to strengthen all concerned. In reviewing the events of the year, I think perhaps the most important ones involve Genesis HealthCare, Kindred Healthcare and Brookdale Senior Living. And, of course, the REITs with close ties to them. With regard to Genesis, I know it took some brass ones for Welltower to work through their various leases with Genesis and sell a large number of the properties. But the important aspect was the reduction of the rents and the smaller annual escalators that will keep Genesis on an upward track. Investors liked it, boosting the share price by 37%... Read More »When a Deal Is Not a Sale
Kindred Healthcare (NYSE: KND) and Ventas (NYSE: VTR) have agreed on a plan that allows Kindred to exit the skilled nursing business, or at least mostly. Of the 90 or so SNFs that Kindred still operates, Ventas owns 36 of them and leases them to Kindred. The two companies have agreed that Kindred can purchase the 36 properties for $700 million (current rent is $49 million), or renew the current lease on all unpurchased SNFs through 2015 at the current rent level. If they all get purchased (and then re-sold at different prices) for $700 million, that would come to $160,000 per bed, which strikes us as above market for the Kindred SNFs. Most likely, the price represents a premium that KND... Read More »Schedule a demo
Gain access to the best healthcare and long-term care investment intelligence, data, and analysis.
