Senior Housing M&A Plunges in Early 2017

After a weak showing at the end of 2016, senior housing transaction dollar volume plummeted even further in early 2017—and a newly cautious market may be to blame.

The dollar volume of publicly announced seniors housing and care acquisitions in the first quarter of 2017 dropped by 78% from the fourth quarter of 2016 to $1.4 billion, according to acquisition data from Irving Levin Associates. When compared to the first quarter of 2016, the dollar volume of publicly announced acquisitions fell 45%.

The number of announced acquisitions in the first quarter of 2017 also declined 22% from the fourth quarter of 2016 to 73 transactions. The number of transactions during the first quarter of 2017 was also 13% lower than the number of transactions during the first quarter of 2016, the data found.


“The decline in activity represents a relatively new degree of caution in the market as buyers and their backers are showing a bit more concern over staffing, occupancy and reimbursement pressures,” Steve Monroe, editor of The Senior Care Acquisition Report, said in a press release. “In addition, some healthcare REITs have been doing more selling than buying, which has helped shape a different environment.”

A large reason the industry is seeing a decline in total dollars spent is the absence of larger transactions, typically over $500 million, he explained.

“That may change this year as there have been rumors of several deals at this high level, and much higher,” he added.


Written by Alana Stramowski

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