What Do REIT Investors Know?
Remember back in March 2020 when the financial world was falling apart, rapidly? March 18 was the bottom for most of the healthcare REIT stocks, when investors thought the pandemic might wipe out a good portion of their investment value in senior care properties. At the time, they weren’t too far off, when top-quality REITs such as Ventas plunged to market values that had not been seen in years. But it was much more of a knee-jerk panic attack based on worst-case scenarios. Hindsight is always great, isn’t it? Within two weeks, most REITs had recovered 30% to 80% of that initial loss, and then steadily rose for the rest of the year. The odd thing was that this nine-month... Read More »
Ventas Buys New Senior Investment Group
Don’t you just love it when a plan comes together? Just when Welltower announced a deal to buy Holiday Retirement Corporation’s 86 owned assets, and Atria Senior Living agreed to buy Holiday itself, Ventas steps in and buys New Senior Investment Group. New Senior owns 77 Holiday-managed communities, 21 communities that have recently been switched from Holiday management to Atria, 15 other communities managed three other providers, and one large community triple-net leased to Watermark Retirement Communities. At the end of the first quarter, just four communities were managed by other companies, so things must have moved during the second quarter. Jay... Read More »
More Good News from Welltower and Ventas
Census is on the rise at the SHOP portfolios of the biggest healthcare REITs. After more than a year of mostly depressing news, it is nice to see that more good news keeps on coming. With a year of canceled earnings forecasts by most public companies and REITs, Welltower announced that it raised the low end of its second quarter earnings per share estimate by nearly 10%, and its normalized FFO by just over 4%. Now that’s some good news! In addition, they had forecast a 130-basis point increase in their SHOP portfolio for the full second quarter, and by June 4th they had already reached 120 basis points. Spot occupancy is now 150 basis points higher than the pandemic low. Ventas is also... Read More »
Canadian Seniors Housing Market
The Canadian seniors housing market has fared a bit better than its U.S. counterpart during the past year or so, but it also started in a better place. Take the Canadian SHOP portfolio of Ventas. It currently has 74 communities that operated in the first quarter 2021 with net operating income of $171.8 million, or just over $2.3 million per community (all amounts in U.S. dollars). This compares with 364 communities with $272.7 million of NOI in the first quarter for the U.S. SHOP portfolio, or $749,000 per community. So, Canada makes up 17% of the communities but 39% of the NOI. Hmmm. On a same-community basis, there were 68 Canadian communities in the first quarter last year... Read More »Schedule a demo
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