Near-Record Third Quarter M&A Volume

October 3, 2018, Steve Monroe, Senior Care Investor - I know I have been a little negative on the market in the past year or so, given all the problems we have seen and written about, not to mention peak pricing a year ago.  I am not sure how to take it, but I guess people have not been listening.

The acquisition activity continues unabated, with back to back quarters with more than 100 announced acquisitions each.  This is a very strong market with heavy demand across the seniors housing and care spectrum.  With 102 deals in the third quarter, we have now posted 293 transactions through September 30.  That puts us on track for a record year, beating out 2015 as the market was reaching its peak.

What is surprising, or maybe not so much, is that each quarter about 50% or more of the deals involve people buying skilled nursing facilities or portfolios.  And they are still buying high quality as well as low quality.  The prices have ranged from $25,000 per bed to $160,000 per bed.

And on the seniors housing side, buyers do not seem to be afraid of all the new development that continues to break ground and open.  Perhaps they like the idea of being the one that already exists, with residents, with staff, with cash flow….just sayin’.