The Dealmakers Forum E-Newsletter, May 8, 2013 - First Quarter Earnings Season Improves, Health Care REIT Sector Could Win Awards for Consistent Performance, CPR on the Radar, Five Stars is Golden

 

Bringing You Senior Care M&A Deals and News
 

May 8, 2013 Issue:

 

Seniors Housing Weekly Update: 60 Seconds with Steve Monroe
First Quarter Earnings Season Improves. Brookdale Senior Living and Kindred Healthcare both post solid first quarter results, sending their respective share prices up.... Read More

 

Recent Senior Care M&A Deals

Home Health Care

Acquirer

Target

Price

Kindred Healthcare

Qstaff Home Healthcare and Advanced Care Hospice

N/A

Kindred Healthcare

Caring Hearts Home Health

N/A

Long-Term Care

Acquirer

Target

Price

Ensign Group

1 SNF and 1 ALF in WA

N/A

Ensign Group

1 SNF in NE

N/A

CNL Healthcare

2 ALFs in  IA

$12.16 million

 

Stock of the Week

While the health care REIT sector could win awards for consistent performance, and 10 of them hit new 52-week highs in April, there has finally been some movement with Kindred Healthcare. The skilled nursing, LTAC and rehab giant has jumped by 14% in the past several days and is trading at its highest levels since last October, the last time it topped $12 per share. Even though everything was not perfect, and sequestration will definitely take its toll on the company, investors liked what they saw in the first quarter earnings report and may start to be believers in the company’s strategy to focus on 21 core integrated care markets for their service offerings. But they have to deliver consistency and that has been the hard part with reimbursement so fluid...... Want to read more news? Click here for a free trial to The SeniorCare Investor and download the current issue today

 

CPR on the Radar

We have talked about the issue of whether or not to provide CRP in senior living settings, and who should be responsible for CPR. Well, the American Seniors Housing Association just came out with its state policy update, and in some states, providers may not have a choice in the future. In California, there are two bills being considered about CPR, including whether an employer can preclude an employee from providing emergency medical services, including CPR. New York has three bills pending dealing with CPR, including a requirement for communities to have external defibrillators on site with someone certified in its use present at all times. Depending on the fate of these bills, more could be coming in other states...Want to read more news? Click here for a free trial to The SeniorCare Investor and download the current issue today

 

Five Stars is Golden

Golden Living announced that it is the first company to ever have 71 of its skilled nursing facilities earn the 5-Star rating from the Centers for Medicare & Medicaid Services. Now, there aren’t many companies that even have 71 skilled nursing facilities, but it is still quite an accomplishment. Golden Living’s overall rating was 3.34, so there are obviously some laggards that bring down the 5-Star facilities, but it compares favorably with the national for-profit average of 3.06. A 5-Star rating means your quality is “much above average,” while a 3-Star rating means you are average. The rating system has been very controversial with providers, except of course, when they receive the Golden 5..... 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

The skilled nursing acquisition market is supposed to be in trouble because of reimbursement concerns, among other issues. But did you know that in 2012 the average price per square foot paid for skilled nursing facilities hit an all-time record of $171 per square foot? The median also hit a record of $160 per square foot. It didn’t hurt that 2012 was one of the strongest years ever, with the average price paid per bed just below the record set in 2010. These buyers obviously see something that the naysayers don’t see. This statistic and more than 60 others can be found in our recently released 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 Jeff Binder

In this "Expert Opinion" interview, Jeff Binder, Principal and Managing Director, Senior Living Investment Brokerage, discusses SNF portfolios, REITS,  buying, selling, predictions for the final quarters of 2013, and more..... Watch Here

 

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

 

GE Capital, Healthcare Financial Services provides tailored healthcare real estate financing solutions
 

Like a bank: We finance healthcare real estate. Unlike a bank: Healthcare financing is all we do
 

We offer customized healthcare real estate and medical property financing solutions including first mortgages, interim financing, acquisition financing and sale leasebacks for a wide range of healthcare operators, real estate developers and investors.  In fact, during 2012 we helped organizations like yours finance over $2.6B in senior housing, skilled nursing facilities and medical properties across the U.S.
Stop just banking. And start building.
Learn more.

 

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