Seniors Housing Weekly Update - Seniors Housing & Care At A Crossroads
October 2, 2012
Seniors Housing & Care At A Crossroads
Is the seniors housing and care sector standing at a capital markets crossroads today? Although everyone would like to have higher occupancy rates and increased cash flow, when looking at the bigger picture of health care REITs and the publicly traded operating companies, it’s certainly looking like the good times are back. Values have skyrocketed and deal-making is flourishing. But what does it all mean? Reading investment reports, it would appear that most every public company is now “in play,” with everyone trying to figure out who will be the next Sunrise Senior Living doing a blockbuster deal with a REIT. Perhaps. But what would happen if, a few years from now, we are left with just a few public companies, and just three REITs controlling 80% or more of the health care REIT market? Would there be less transparency? With fewer companies reporting occupancy, rate growth and margin trends, would we really know how the industry was performing? Would the REITs divulge more information on their operating partners…or less. A lot of takeover rumors have been swirling around, and if there is any truth to them, we may be in for a significant change in the “public” face of the market.