The Dealmakers Forum E-Newsletter, May 1, 2013 - First Quarter Earnings Results Are Coming In, Ventas Reports on Seniors Housing

 

Bringing You Senior Care M&A Deals and News
 

May 1, 2013 Issue:

 

Seniors Housing Weekly Update: 60 Seconds with Steve Monroe
First Quarter Earnings Results Are Coming In. Five Star Quality Care shares plunge on weak occupancy numbers... Read More

 

Recent Senior Care M&A Deals

Home Health Care

Acquirer

Target

Price

Mears

 Independent Living Services (ILS) Ltd.

 $34.425 million

Long-Term Care

Acquirer

Target

Price

 National Health Investors, Inc.

 2 - Skilled Nursing Facilities in TX

 $26.3 million

 AVIV REIT, Inc.

 1 - Skilled Nursing Facility in TX

 $2.4 million

 

Deal of the Week

Kindred Healthcare, in its ongoing efforts to create integrated care markets, has entered into an agreement to sell 15 LTACs, one rehab hospital and one skilled nursing facility with a total of 1,231 beds to Vibra Healthcare, LLC for $187 million. This portfolio had revenues of $289 million and EBITDAR of $34 million (10 of the properties are leased with annual rent of $14 million) in 2012, so the margin is lower than Kindred’s overall margin and much lower than the more than 20% LTAC margin the company has. Vibra, founded in 2004 by Brad Hollinger (former CEO of assisted living company Balanced Care), operates LTACs, rehab hospitals and therapy clinics with more than 1,400 staffed beds, so this acquisition will nearly double its size to more than 2,600 beds assuming it keeps all the properties. We also assume that Kindred’s $9 million allocation for overhead will be much lower for Vibra, so the margins should start to increase. This looks like a good deal for Vibra and will allow Kindred to increase its focus on its 21 designated integrated care markets..... Want to read more news? Click here for a free trial to The SeniorCare Investor and download the current issue today

 

Ventas Reports on Seniors Housing

One of the star stock performers year in and year out has been Ventas, and along with Health Care REIT it has made the plunge into RIDEA structures for some large seniors housing investments. As former New York City mayor Ed Koch used to ask, “So how’m I doin? For Ventas, its Sunrise Senior Living and Atria Senior Living portfolios are doing fairly well. On a combined same-community basis for the 186 stabilized properties, occupancy increased by 220 basis points from the year-ago quarter to 91.3% and EBITDAR grew by 5.8%. Sequentially, however, it was a different story, and with a larger base of 204 communities, occupancy dipped by 90 basis points to 91.2% in this year’s first quarter. The good news was that sequentially the average daily rate increased by almost 6%, which is unusual, and the EBITDAR margin actually improved by 60 basis points to 31.8% despite the census drop. Now that we are past the flu season we expect occupancy number to trend upwards...Want to read more news? Click here for a free trial to The SeniorCare Investor and download the current issue today

 

Settlement of the Week

At long last, National Health Investors (NHI) and National HealthCare Corporation (NHC) have settled with the Tennessee Attorney General on a matter that dates back to 2001 when NHI helped to set up two shell not-for-profits to purchase a group of SNFs in Missouri and Kansas and another group in New Hampshire and Massachusetts. Among the allegations was that the price paid by the not-for-profits was above market and the financing terms were more favorable to the REIT. As part of the settlement, the two not-for-profits will pay a discounted amount to settle some claims from NHI, while NHI will acquire the New England properties and lease them to NHC. The winner will be the people of Tennessee, as about $40 million of proceeds will be used for charitable purposes in the state...... Want to read more news? Click here for a free trial to The SeniorCare Investor and download the current issue today

 

Beech Street Does Senior Housing the Right Way          
Few mortgage lenders offer as extensive a selection of seniors housing financing communities for independent living, assisted living, and skilled nursing communities as Beech Street Capital. And even fewer are capable of executing those solutions with as much competence and certainty. Our seniors housing experts tailor each transaction to meet the needs of our borrowers, drawing on Fannie Mae, Freddie Mac, FHA, and non-agency sources. This unique combination of selection, speed, and service explains why Beech Street has catapulted into the front ranks of Fannie Mae and Freddie Mac, and a rapidly growing HUD business in just three short years. Beech Street has all the flexibility you would expect from a privately owned, entrepreneurial company with the experienced, knowledgeable, and well-connected team to match. Borrowers depend on Beech Street to come up with solutions that really work for them.
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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