Seniors Housing Weekly Update - Senior Care M&A Market

March 18, 2014

 
March 18, 2014. 60 Seconds with Steve Monroe. Every year, it starts with the average price per bed and unit, and our Senior Care Acquisition Report then explains why the changes occurred.

Senior Care M&A Market

Every year, when we compile our statistics on the seniors housing and care M&A market, I always tell the people I work with here that once we have derived the average price per bed or unit for the sectors, all the other stats sort of fall into place. What I mean by this is that if the average price per skilled nursing bed goes up, we usually can discover why. In 2013, despite a small rise in the average cap rate, the average price per skilled bed increased because the operating margin of these facilities sold went up, the NOI per bed increased, and the average occupancy rate for these facilities jumped by 300 basis points. In other words, the details back up the general price trends. The same thing happened with the seniors housing market, where the average price per unit for AL and IL combined increased and nearly broke the record, while the median did set a new record. Why? The average operating margin increased by 140 basis points, the average occupancy rate increased by 400 basis points, and the NOI per unit increased. All of this will be detailed in our upcoming 19th edition of The Senior Care Acquisition Report.      

 

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