Earnings Announcements Feature Major M&A Moves
The mid-summer M&A doldrums abruptly ended this year with the earnings announcements from the publicly traded REITs. They started with Welltower, which announced its $1.8 billion Benchmark Senior Living portfolio sale (for 48 properties) and several major portfolio acquisitions with existing partners Sunrise Senior Living and Discovery Senior Living and new partners Balfour Senior Living and Clover Management, comprising some 94 properties not including a couple of massive development pipeline agreements with Balfour and Discovery. That was just the start. Other big news was in Omega Healthcare Investors’ Q2 press release, in which the REIT announced that it would spend $735 million... Read More »
The Great Development Slowdown
Everyone is talking about development slowing down, but over development is just part of the problem. We have been hearing it for a few months: seniors housing development is slowing down, based on fewer new construction starts. We have heard it from NIC MAP, from HCVenTower, and now Brookdale Senior Living. They are all saying that in many of their markets, they are seeing light at the end of the over-development tunnel. Maybe. It is one thing if new starts are declining, but it is quite another to fill the current empty units plus the new supply that is currently opening, and going to open. Let’s just say, we are not out of the woods yet, and census is only one part of the problem. Not... Read More »
Welltower Makes Major M&A Moves
Welltower made M&A waves in its latest earnings report, announcing a major disposition of its Benchmark Senior Living assets but countering that with several large acquisitions and development agreements. The company signaled that despite the Benchmark sale, it is not lowering its position in the senior living market, offsetting the 48 properties sold with a total of 46 acquired, not including the developments promised in a couple of massive pipeline agreements. The big news was the Benchmark sale, which consisted of all 48 assisted living properties and 4,137 total units located throughout New England, or 100% of the Welltower-owned portfolio. The transaction was structured as a... Read More »
REITs Are Moving Assets Again
Just when we thought it was safe to go outside again, it was revealed that Welltower had transferred the operations of 20 memory care and Alzheimer’s communities from one of its formerly favored tenants, Silverado Senior Living, to a formerly much smaller tenant, Frontier Management. These 20 properties represent 50% of Silverado’s memory care operations, and the transition is obviously a serious blow. To say that people were shocked by this development would be an understatement. Of the 20 properties, 11 are located in Texas and the rest scattered among four other western and midwestern states. We understand that sometimes a REIT or a lender has to make difficult decisions to protect its... Read More »Schedule a demo
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