The Dealmakers Forum E-Newsletter, April 10, 2013 - Being Number One, Des Moines an Iowa-based Life Care Services is Partnering With Sears Methodist Retirement System in Texas, Breaking the Market Down into Quartiles

 

Bringing You Senior Care M&A Deals and News
 

April 10, 2013 Issue:

 

Seniors Housing Weekly Update: 60 Seconds with Steve Monroe
Being Number One. It takes a lot of effort and team work to be number one, but it's worth it..... Read More

 

Recent Senior Care M&A Deals

Home Health Care

Acquirer

Target

Price

 Salus Homecare

Aspen Home Health & Rehab

 N/A

LHC Group Inc.

Infirmary Hospice Care

 N/A

VITAS Healthcare Corporation

Solari Hospice Care

 N/A

Long-Term Care

Acquirer

Target

Price

 Kandu Capital, LLC

Two Senior Living Communities

 $7.2 million

 The Ensign Group, Inc.

 Three skilled nursing facilities

 $7.1 million

 Regional Owner/Operator

Desert Gardens Assisted Living

 $3.53 million

 National Owner

Pelican Pointe Assisted Living

 $20.95 million

 National Owner

Princeton Village Assisted Living

 $6.8 million

 

Deal of the Week: Life Care Services

When we think of a major “deal,” we often think of an acquisition. But this week our “deal of the week” is not an acquisition per se, but a transaction whereby Des Moines, Iowa-based Life Care Services is partnering with Sears Methodist Retirement System in Texas and will assume the management and marketing of all of Sears Methodist’s communities. This will be no small task. Sears Methodist has 11 communities in Texas with 1,722 units, including 685 independent living, 102 assisted living and 34 memory care units, plus 901 skilled nursing beds. There are 1,326 community-based employees and 43 in the corporate office. A senior executive of Life Care, Greg Williams, will become president and CEO of Sears Methodist and, we presume, work under the Life Care umbrella......... Want to read more news? Click here for a free trial to The SeniorCare Investor and download the current issue today

 

Stock of the Week: LTC Properties

The seniors housing providers have had quite a run in the stock market, but it is looking more and more like they have plateaued, at least until first quarter earnings are released which, if positive, may provide a pop or two. The entire REIT sector, however, could be the “stock” of the week, but LTC Properties has had the biggest gain since the beginning of April, increasing by 5.6%, and that is on top of a 5.6% gain in March, and it is now up 22% for the year (so far). This time last year, the stock had a dividend yield of 5.4%, but with the 34% price gain since then, the yield has dropped below 4.4%. Investors may like the fact that LTC pays its dividends monthly, rather than the common quarterly payout. No one complains about receiving their money faster.......Want to read more news? Click here for a free trial to The SeniorCare Investor and download the current issue today

 

Stat of the Week

Most of the statistics that you see in the acquisition market revolve around averages and medians. While important, breaking the market down into quartiles may be more relevant for some buyers and sellers. In 2012, the upper quartile price for assisted living communities sold was $175,100 per unit, meaning that 25% of the properties sold were at that price or higher. This was actually lower than the upper quartile in 2011, when it hit $190,100 per unit. The lower quartile, however, increased in 2012 to $95,100 per unit, from $82,000 per unit in 2011, meaning that 25% of the assisted living communities sold had a price lower than these levels in their respective years. These stats and more are discussed in our just published Senior Care Acquisition Report (18th Edition).......... Want to read more news? Click here for a free trial to The SeniorCare Investor and download the current issue today

 

Expert Opinion: A Conversation with Richard Lerner

In this "Expert Opinion" interview, Rich Lerner, Director, Housing & Healthcare Finance, LLC, discusses long-term fixed rates, HUD, bridge financing, staff, and more..... Watch Video

 

Beech Street Does Senior Housing the Right Way
Few mortgage lenders offer as deep a range of seniors housing, long-term care and multifamily financing solutions. And even fewer can do it with as much speed and certainty. Beech Street Capital does all of that nationwide through Fannie Mae, FHA, and non-agency lending sources. And why Beech Street has catapulted into the front ranks of lenders, earning the #3 spot at Fannie Mae, in just a few short years, and why our HUD business is growing at such a rapid rate. Beech Street is customer driven. Because we're a privately owned entrepreneurial company with an experienced, knowledgeable and well-connected team. Come to Beech Street for solutions, that really work, and won't have you growing old while you wait. http://www.beechstcap.com/thank-you-seniors

 

 

JUST PUBLISHED - The Senior Care Acquisition Report, 18th Edition - Save $50 Instantly
Deals have been made. The 2013 Senior Care Acquisition Report contains private deals in this market that are frequently too small to make it into the financial press. Take advantage of our limited $50 savings offer - order The 2013 Senior Care Acquisition Report by May 31st and save $50 instantly! Now that’s a recession resistant deal. Go to http://www.levinassociates.com/landing/scar18order or call 800-248-1668 to order today!

 

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