CEO of Aviv REIT Interview: Senior Housing Capital Environment

The National Investment Center recently sat down with Craig Bernfield, chairman, chief executive officer & president, Aviv REIT to discuss the senior housing capital environment.

With capital hard to come by, Aviv decided to tap the unsecured public bond markets in 2010.  The company remains optimistic about the bond market and expects it to be an attractive way for it to finance growth.

Can you outline the capital raise, including how it has impacted your cost of funds? Additionally, how has this and other financing positioned Aviv for growth?

Mr. Bernfield: Accessing the public bond markets enabled us to raise attractively priced, fixed rate, long term financing while diversifying our debt and maturities. We issued $200 million of 8-year bonds at a 7.75% yield in February. We were able to return to the market a few weeks later and completed an add-on issue of $100 million at an effective yield of 7.16%. Our bonds were trading at a yield of 6.56% at the end of April. We feel optimistic about our ability to continue to access the bond market, and we believe that this market will be an attractive source of capital to help finance our growth.

Read the rest of the interview at the link below.

The Seniors Housing Capital Environment: A Discussion with Craig Bernfield