Ventas Preparing For Worst
There is no way to mince words. When it comes to valuation, Ventas is a shadow of its former self. After being worth more than $20 billion, its market cap has dropped to just $7.8 billion. This compares with Welltower ($15.8 billion) and Healthpeak Properties ($11.8 billion). So much for the “Big Three” REITs. This is new territory for Ventas and its CEO, Debbie Cafaro. But who knows, maybe the Penguins will win the Stanley Cup this year, if there is one. Ventas, like Brookdale Senior Living, has withdrawn its 2020 earnings guidance. It stated that tours and move-ins at its operators are beginning to slow, even though the first two months of the year met previous expectations. What a... Read More »
Monday’s Massacre
Providers got hurt in Monday’s stock market massacre, but healthcare REITs across the board suffered. We all know that Monday’s massacre in the stock market affected almost all companies. In our sector, the focus has been on providers, since they take care of the highest-risk people as this coronavirus/Covid-19 epidemic spreads. The unprecedented 2,013-point drop in the Dow was bad enough, and providers plunged as well. But so did the healthcare REITs that own their properties. Most of the REITs in our universe dropped by double digits, compared with 7.8% with the Dow and 7.6% with the S&P 500. Diversified Healthcare Trust plunged the most, falling 17.7% on Monday. It was... Read More »
Welltower Continues Asset Reshuffle
The major M&A moves keep on coming from Welltower, as the REIT giant continues to reshuffle assets. And this is as good a time as any, since according to The Senior Care Acquisition Report (which will be published later this month), seniors housing values are currently at a record high, averaging $244,200 per unit sold in 2019. Cap rates are also near record lows, making for some very happy sellers. Welltower announced that it was selling a “prominent Seniors Housing Operating portfolio in the western United States” for a gross sale price exceeding $740 million. The properties, which were assisted living, are located in California, Nevada and Washington, and were 97% occupied. They... Read More »
Genesis HealthCare Sheds More SNFs
Genesis HealthCare continues to pare down its skilled nursing portfolio, putting the leaner company on surer financial and operational footing. The provider entered into a series of agreements with New Generation Health, LLC to transition operational responsibility for 19 facilities in California, Washington and Nevada. For six of those facilities, Genesis sold both the real estate and operations, while just transferring the operations of the 13 remaining skilled nursing, behavioral health and assisted living facilities, for a total of $79 million. Genesis will still retain an indirect 50% interest in the portfolio, but for day-to-day operations, it’s out. The company will still provide... Read More »Schedule a demo
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