September 2, 2025 – 60 Seconds with Swett: Heading Down to Austin
We’re heading to Austin for the NIC Fall Conference, where optimism is high amid strong M&A activity, improving capital markets, and hopes for a rate cut. With steady operating gains and rising property values, more sellers may enter the market, fueling higher prices and potential record per-unit values.
Transcript
We are looking forward to flyin’ down to Austin next week for the NIC Fall Conference, as we are anticipating a very positive mood among the attendees. That is because M&A activity is high and healthy. The capital markets keep improving from a deal terms and liquidity perspective. The promise of a 25-basis point interest rate cut is probably boosting spirits more than actually making much of a financial impact on the cost of borrowing.
Meanwhile the operating environment continues to make steady progress, and property values are on the rise, at least according to our latest valuation stats available on LevinPro LTC, which could entice more sellers into the market with their higher quality, well-performing properties. That would in turn lead to a rise in prices too, and then the virtuous cycle begins until we see new record-high per-unit prices and the math for new development projects starting to make sense again.
We’ll keep our ears to the ground for any clues pointing towards this shift in market dynamics and about any game-changing deals in the works. And let me know what you’re seeing and hearing, too, or my colleagues at The SeniorCare Investor, Steph Mallozzi and Rogie Turco, who will also be roaming the halls. See y’all next week.
An Update to Our Valuation Statistics
Deal activity in 2025 shows value-add dominance, some Class-A sales, steady liquidity, and slightly lower cap rates, boosting values. Watch our Aug 28 webinar, A Mid-Year Valuation Stats Update, for fresh LevinPro LTC data and expert insights on market trends, buyers, and M&A strategies into 2026.
60 Seconds with Swett: SNFs Get a Boost from CMS
CMS finalized a 3.2% SNF PPS rate hike for FY2026, raising payments by $1.16B—less than last year but above initial proposals. States are also adjusting Medicaid rates to better reflect SNF realities. Support remains strong post-pandemic, but uncertainty lingers as policy shifts could still impact margins.
60 Seconds with Swett: Welltower Continues to Climb
Welltower hit a record $165.87/share, pushing its market cap past $100B—the first in the industry. Q2 results impressed, with occupancy up 420 bps YoY to 88.8% and SHOP NOI rising 23.4%. A 10.4% dividend hike and $9.5B in liquidity position the REIT for continued growth through acquisitions and development.
