The SeniorCare Investor: Assisted Living and Skilled Nursing Soar -

New Record Prices For ALFs, Close To Record For SNFs
 

After 2011, when the M&A market news revolved around all the large REIT deals, it would have been hard to believe that the market could be as strong, or stronger, in 2012. After all, we all know that the REIT activity slowed in 2012, at least with regard to the mega-REIT deals. Yes, there were the two very large transactions announced by Health Care REIT (NYSE: HCN) and HCP, Inc. (NYSE: HCP) in 2012, but almost all the others were relatively small in comparison with 2011.

Most of these large transactions are not included in our pricing statistics, however, as they usually involve the REIT leasing the properties back to the same provider (or having them manage the properties under a so-called RIDEA structure), so most of these are not considered to be arms’ length. In addition, many of these are “relationship” deals, either with an existing tenant or with future business promised where the acquisition terms can be impacted by the overall relationship between the two sides. We realize some REITs may disagree with that assessment, but this is the way we have been doing it for more than two decades. Some of the transactions, however, usually involving a sales process with a full marketing package, ended up being arms’ length. And, in .....Want to read more? Click here for a free trial to The SeniorCare Investor and download the current issue today