The Dealmakers Forum E-Newsletter, July 24, 2013 - Long-Term Care Commission Will Fail, Kindred Healthcare May Finally be Displaying the Strength That we Always Knew was There, Tax-Exempt Bond Market

 

Bringing You Senior Care M&A Deals and News
 

July 24, 2013 Issue:

 

Seniors Housing Weekly Update: 60 Seconds with Steve Monroe
Long-Term Care Commission Will Fail. With one meeting down, and three to go in August with a September deadline, the LTC Commission won't solve any problems.... Read More

 

Recent Senior Care M&A Deals

Long-Term Care

Acquirer

Target

Price

Griffin-American Healthcare REIT II

44-facility Senior Housing portfolio

$447.8 million

Bickford Senior Living

Six Senior Housing Communities

N/A

 

Stock of the Week

Kindred Healthcare may finally be displaying the strength that we always knew was there. As it keeps on paring down on assets that do not fit in its 21 designated “Integrated Care Markets,” and adding assets and businesses that are in those  markets, the market dominance it hopes to gain, as well as the cash flow, will begin to show. Three years ago, we wrote that when Kindred was trading at $13.00 per share, investors were basically giving no value to its 267 leased properties, and that its 39 unencumbered properties were worth more than the entire market cap of the company. Kindred dropped substantially from that $13.00 level, but it is now up 17% since the end of June, 42% since the beginning of the year and 60% over the past 12 months. Having hit a 52-week high of $15.54 recently, the stock still has upward momentum... Want to read more news? Click here for a free trial to The SeniorCare Investor and download the current issue today

 

Financing of the Week

The tax-exempt bond market for seniors housing is alive and kicking. Ziegler just completed a $93.625 million financing for a community in Massachusetts known as North Hill Needham. The 59-acre campus has 285 independent living units and 72 skilled nursing beds, and the new funds will be used to construct a new 71,930 square foot skilled nursing center, new dining venues, about 60,000 square feet of other new construction and to renovate 139,450 square feet of the existing buildings on the campus. And North Hill is a stand-alone community not part of another Obligated Group, so this is a large financing for a one-off credit...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

Although it is quite intuitive, this statistic is often overlooked by potential sellers in trying to determine what their skilled nursing facility might fetch in the market. In 2012, those skilled nursing facilities with less than 300 total square feet per bed sold, on average, at a $15,000 per bed discount (and more) to the larger facilities. The average price for nursing facilities that were between 250 and 299 square feet was $47,300 per bed, and this increased to $61,100 for those between 300 and 349 square feet and topped off at $79,300 per bed for those between 350 and 399 square feet. Size does matter, but it can also be a bit of a hindrance when the size is too large and unmanageable. In many years, those facilities over 399 square feet see a drop-off in average price, especially for those facilities with excess space that is really not used, and these are often converted buildings with poor layouts......Want to read more news? Click here for a free trial to The SeniorCare Investor and download the current issue today

 

Wells Fargo Capital Finance

You need a lender who can deliver every step of the way
 

Healthcare is your business. Providing financing to healthcare companies so they can run smoothly and efficiently is ours. With the Healthcare Finance team at Wells Fargo Capital Finance, you get the proven reliability of a leader, along with the knowledge and experience you want. Plus, our financing can provide cash flow to keep the business running efficiently, or extra capital to help the business grow. To help maintain the well-being of your business, let’s start a conversation today. Call us at 1-877-770-1222 or visit us online at wellsfargocapitalfinance.com/healthcare-finance.php.

 

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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