Seniors Housing Weekly Update - Second Quarter Earnings Update
August 7, 2012
Second Quarter Earnings Updates
The public companies have started reporting their second quarter earnings results, and so far it has been mostly positive news. On the REIT side, Ventas reported a 19% increase in second quarter per share funds from operations (FFO). And management increased its guidance for the full year. On the provider side, Capital Senior Living turned in another good quarter, increasing its EBITDAR margin by 80 basis points from the year ago quarter, and it continues to be the best performing seniors housing stock so far this year. Perhaps the best news was that same-facility occupancy was up 160 basis points from the year-ago quarter, a trend we have been hearing for the industry as a whole. And The Ensign Group keeps plugging along, beating consensus earnings estimates by 10%. The market liked it, sending Ensign’s shares up 5% on a day when the overall market was down 1%. Not too shabby. More results will be coming out, but I will be away from the office on vacation getting some much-needed rest.