May’s M&A Meltdown
The M&A statistics are in for May, and it was a doozy. Only 19 seniors housing and skilled nursing deals were publicly announced during the month, nearly half of which coming from the first quarter earnings reports of several public companies. Without those, we would have barely made it to double digits. You have to go back to July 2017 for such a low monthly total, when 16 sales were disclosed. Back then, however, the month was followed by a strong August (27 deals) and September (35). We’re not as hopeful for such a comeback this time. Another facet of May’s M&A activity was that nearly all of the deals were either closed in the first quarter or were all-but-completed... Read More »
Going Concern Problems at Capital Senior Living
Late last Friday, Capital Senior Living announced that it expects to disclose its first quarter earnings results before the market opens on May 21, and then hold its conference call with analysts. It will not be pretty. Also late Friday, the company filed an 8-K with the SEC stating that the coronavirus was taking its toll, and we quote: “The sudden onset of COVID-19 has had a significant adverse impact on occupancy levels, revenues, expenses and operating results at our communities. Although we are unable to predict the full nature and extent of the impact of COVID-19 at this time, we expect COVID-19 will continue to have a significant adverse effect on our business, financial... Read More »
Welltower Reports Q1 Earnings
Welltower announced its first quarter earnings last week, and the REIT caused a bit of a buzz by cutting its May 2020 dividend to $0.61 per share from the previous dividend of $0.87 per share. Cutting dividends is not as rare an event these days, just ask Sabra Health Care REIT or Diversified Healthcare Trust, but if you’re a REIT, this may be the best time to do it. Welltower further added to its liquidity by settling forward equity sales agreements totaling $588 million and closing a $1 billion unsecured, two-year term loan that bears interest at LIBOR plus 120, and adding $110 million of incremental cash flow retained per quarter by cutting the dividend. The REIT also completed pro rata... Read More »
Welltower Is Going Transparent
First, we have to applaud Welltower for being very transparent with regard to what is happening with its customers, specifically its seniors housing operating portfolio (SHOP) customers. This is very important, not only for REIT investors, but for the entire seniors housing community to better understand how this COVID-19 pandemic is impacting business, but also the general economic deterioration. Last month, Welltower disclosed that its SHOP portfolio, which includes 612 properties with more than 73,000 units, had seen 20-basis point declines in occupancy every two weeks in March, that costs were rising and that tours and move-ins were starting to decline. This... Read More »Schedule a demo
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