And the Audience Says…
Last week, we hosted a webinar tackling the differences between two classes of seniors housing communities: “A” quality versus “B” quality. Often, buyers and investors of one group do not do much business in the other, so it is worth breaking out the differences in valuation, operations and investment strategies. So, for the last several years in our annual Senior Care Acquisition Report, we have divided seniors housing properties into these categories based on a combination of their age, size and location. Leading up to the pandemic, prices paid for “A” quality properties were surging as labor and occupancy headwinds seemed to be affecting “B” (and “C”)... Read More »
Senior Care M&A Market in a “Post-Covid” World
Editor’s Note: This article focused on the senior care M&A market was featured in our sibling publication, The SeniorCare Investor It is safe to say the senior care M&A market in 2020 is quite different from that of 2019, in terms of the number of acquisitions closed, the values for senior care properties and perhaps most importantly, the types of properties actually put up for sale. Value-add and distressed communities have so far dominated the market since the onset of COVID-19, as owners of newer, stabilized communities are largely sitting on the sidelines to wait for a seller’s market again. Who knows when that will happen? Assisted living communities have been hit... Read More »
April Was Cruel for Long-Term Care Deals
The Long-Term Care sector is typically the busiest for healthcare mergers and acquisitions. Month after month, the seniors housing and care market posts the largest share of transactions, often between 25% and 29%. But these are not typical times. Now we’re dealing with COVID-19 and seniors housing has been hit especially hard by deaths, visitor restrictions, and more. Deal flow in this sector ground to a halt in mid-April, according to our Deal Search Online database. In January 2020, 33 transactions were announced, followed by 30 in February and 35 in March. Through April 28, just 16 deals have closed, the last one on April 15. For context, 39 deals were reported in April 2019.... Read More »
Welltower Unloads Seniors Housing Portfolio
Welltower Inc. (NYSE: WELL) announced the largest deal so far in the month of February, by price, at least. It’s been a slow month for healthcare mergers and acquisitions, so the selling price of $740 million is leading the pack. The portfolio consists of assisted living communities located in California, Nevada and Washington. They were primarily assisted living communities that were 97% occupied, on average. The buyer wasn’t disclosed. It wasn’t the only divestiture by Welltower this month. The company also sold three skilled nursing facilities for $67 million. The SNFs have a combined total of 429 operational beds, for an average of $156,177 per bed. The average age of... Read More »