April Was Cruel for Long-Term Care Deals

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 »
April Was Cruel for Long-Term Care Deals

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 »
Welltower Shuffles Medical Office Building Portfolio

Welltower Shuffles Medical Office Building Portfolio

Welltower Inc. (NYSE: WELL), one of the largest diversified healthcare REITs, is mixing up its medical office building portfolio. Although Welltower is incredibly active in the Long-Term Care sector with its post-acute care facility portfolio, its MOB portfolio is worth highlighting. So far this year, the company has announced $3.5 billion worth of outpatient medical acquisitions. The most recent acquisition involves the purchase of a 29 Class-A medical office portfolio from Hammes Partners for $787 million. The portfolio totals 1.5 million square feet and has an average age of 10 years, with 12 years of weighted average lease term and 2.2% average annual rent increases. The... Read More »
April 2018 Healthcare Deals Explode

April 2018 Healthcare Deals Explode

Boom! That was April 2018’s M&A results breaking the sound barrier. With 167 transactions, the monthly deal total (almost) blew away the record for deals in a single month. The current record is now January 2017, with 178 transactions. With time, as more deals come to light, April 2018 may be the new champion. Deal volume was 21% higher than the 138 transactions reported in March 2018, and up 55% compared with April 2017’s 108 transactions. The Long-Term Care sector was a major force behind the surge in deal volume. A record 46 deals were reported, representing a 92% increase over March’s anemic 24 deals, and a 130% gain over the 20 deals reported a year earlier.... Read More »