Seniors Housing Weekly Update - Health Care REIT Competition Turns Negative
June 10, 2014
June 10, 2014. 60 Seconds with Steve Monroe. The once clubby health care REIT sector has become decidedly less friendly
Health Care REIT Competition Turns Negative
What is happening to our clubby little world of seniors housing investing? Just two months into the job, Health Care REIT’s new CEO has not only been quoted as saying he was hanging around a potential deal just to drive up the price so someone else could pay a high price for mediocre to poor assets. But in addition, he said because seniors housing is not sexy, the best and the brightest are not looking to work in seniors housing. Who, exactly, is he talking about? You….me….or the employees at the other REITs? Come on Tom, I know you went on to ask, what’s sexier than the demographic trends and the growth characteristics in our industry? But if you are having fun “hanging around the hoop” to drive up the bidding, keep in mind that what goes around comes around. And when you talk about other people’s assets as being mediocre to poor in quality, let’s just hope you keep a close eye on some of the chickens in your coop, and that high quality does not become mediocre, because as you will learn, it’s all about the operations. Welcome to the club Tom.