Seniors Housing Weekly Update - Senior Living Stocks Rise After Health Care REIT Buys Sunrise

August 28, 2012


 

August 28, 2012. 60 Seconds with Steve Monroe. Higher valuations, lower cap rates, and anticipation of more REIT takeouts trigger a surge in prices.......
 

 

Senior Living Stocks Rise After Health Care REIT Buys Sunrise

What a way to kick off what is expected to be a very busy acquisition market in the last four months of the year. Last week’s surprise announcement that Health Care REIT is buying Sunrise Senior Living for $14.50 per share pushed the other senior living stocks higher in anticipation of higher valuations, lower cap rates and perhaps more REIT take-outs of other companies. One has to remember, however, that when Mark Ordan took over at Sunrise, with its shares trading below 50 cents and bankruptcy looming, a sale of the company was always on the table, as sort of an “exit” strategy if he could accomplish what many thought was a near impossible task. Unfortunately for Mark, he exercised some options at 92 cents per share last March for 225,000 shares and then sold them at half the $14.50 value. Oh well, no one is crying and he has plenty more low-priced options to exercise and sell at the full deal price. Congratulations Mark, consider it mission accomplished.    

 

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Thanks for the information...

Thanks for the information... really useful.

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