Seniors Housing Weekly Update-- Seniors Housing First Quarter Earnings
May 1, 2012
Seniors Housing First Quarter Earnings
Earnings season is upon us again and this is going to be a busy week. Eight operating companies are reporting their first quarter earnings either on May 2nd or 3rd, making it the most condensed earnings period we can remember. We wonder whether anyone will ask Assisted Living Concepts about the “strategic alternatives” process that was coming to a conclusion at the end of April. We’re not holding our breath. The stock is close to its 52-week high, but not because shareholders are expecting an announcement. As far as we can tell, most of them are still clueless. Five Star Quality Care was the first one out of the earnings block, and with flat 'same-store' occupancy year over year and lower earnings, investors took the shares down by 9%. Before reporting its earnings this week, Kindred Healthcare received some good reimbursement news for its long term acute care hospitals (LTACs), which initially sent the shares soaring by 29% before settling down. And on the REIT front, both Ventas and LTC Properties have hit new 52-week highs, and we suspect a few other REITs may join them if they report good earnings. What a week it will be.