Editor’s Picks: REITs Soar on Fed Decision, $1.1 Billion Trilogy Acquisition

This week, SHN readers caught up on one of the biggest industry acquisitions as of late and were eager to learn more about the implications for REITs following the news that the Federal Reserve would not change its policies to raise target interest rates. Other top stories of interest involved a new entrant to the senior living sector and how providers are adapting marketing techniques for a personal touch that could appeal to baby boomers.

Finally, while Labor Day is barely in the rear-view, it’s not to soon for providers to start planning their holiday-related programs and initiatives … as we were reminded by holiday card art contest.

This Week in Review

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REITs Early Winners as Fed Holds Its Fire – Hot on the news that the Federal Reserve would hold off on raising interest rate targets, REIT stock prices rose in the immediate fallout. While the sector rallied following the news, the Fed is unlikely to hold off policy changes much longer.

Rising Interest Rates Could Put Senior Housing Deals on Ice – While Federal Reserve policymakers decided against increasing targets in the federal funds market, a move to do so is imminent, and could send ripples throughout the senior living industry. Higher interest rates would impact REITs’ bottom line, hitting developments and the current rate of transactions and investment dollars pouring into the market.

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Trilogy Health Services to be Acquired for $1.1 Billion – In one of the largest acquisitions this year, Griffin American Healthcare REIT III, Inc., announced it will acquire Louisville-based Trilogy Health Services LLC for $1.125 billion in a joint RIDEA-structured joint venture with Northstar Healthcare Income, Inc. Griffin American will own 70% of the venture, while the public, non-traded REIT Northstar will own 30%. The acquisition doubles the size of Griffin American, bringing its estimated portfolio up to $2 billion.

Senior Living Replaces Cookie-Cutter Marketing with Personal Touch – Some senior living providers have ditched the old marketing ways in favor of a more personalized approach by involving residents in everything from stock photos in sales collateral to ambassador programs that encourage outreach to prospective residents. Letting residents share their own stories has helped some providers create a more authentic message that can boost referrals.

New Senior Living Player “Frog Kissing’ and Planning Big – Sighting vast opportunities in a space with growing demand, a new, Florida-based corporation, Senior Lifestyles Associates, Inc., has entered the field seeking its first acquisitions in the mid-Atlantic region. The company is a joint venture between Aeon Partners, a Florida private equity investment corporation, and Trilogy Capital Group, a Delaware limited liability company.

For Your Viewing Pleasure

Senior Living SMART Resident Holiday Art Contest 2015 Accepting Submissions – Senior Living SMART (SLS) announced its annual resident art contest and is now accepting holiday-related art submissions from talented residents. We were enjoying looking through some of the festive and evocative images from past winners, so wanted to share some of this early holiday spirit with our readers in the slideshow below. Providers can submit photos of resident art via SLS’ Facebook page until September 30.

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Written by Amy Baxter

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