Seniors Housing Weekly Update: Aviv REIT Files For IPO
December 18, 2012
Aviv REIT Files For IPO
Most people agreed that 2011 was the year of the REIT, and 2012 was not too shabby either. Perhaps taking advantage of the popularity of REITs, the market will be tested with the recent filing for an IPO by Aviv REIT. It has been a while since we have seen a REIT IPO in our sector, and the closest was Sabra Health Care REIT, but that was a spin-out to shareholders so it is not quite the same. But in many ways, Sabra and Aviv are similar in that their respective quarterly revenues are similar at about $30 million, with total assets of $1.0 billion for Aviv and $843 million for Sabra and growing. The big difference is the diversity of portfolios, with Sabra still having well more than 50% of its revenues from Sun Healthcare, while Aviv has 37 tenants, with five representing 54% of its revenues, including Sun with 11 properties. Despite the diversity difference, investors will be using Sabra as a good comp, and possibly Omega Healthcare. Aviv unsuccessfully tried the IPO route a few years ago, but we expect a better outcome this time. Have a Merry Christmas.