Senior Housing M&A Spending Dips in Q3

The dollar volume of senior housing and care properties changing hands sagged in the third quarter of 2017.

About $2.5 billion worth of such acquisitions were publicly announced during the second quarter of 2017, according to the most recent statistics from Irving Levin Associates. That’s a far cry from the second quarter’s blockbuster volume of $9.7 billion and a smaller drop from last year’s Q3 volume of $3 billion.

Overall, 71 public deals took place in Q3, a slight dip when compared with Q1 and Q2’s deal totals of 76.


The quarter did have some sizable transactions, however. Chief among them was Sabra Health Care REIT’s (Nasdaq: SBRA) acquisition of a 49% equity interest in a joint venture that owns 183 senior housing communities managed by Chicago-based operator Enlivant.

Sabra also made its first major skilled-nursing deal since merging with Care Capital Properties when it bought 24 North American Health Care SNFs for a total of $430 million last month.

With the latest quarter’s results in, it looks like 2017 isn’t likely to beat 2016’s total number of deals in deals (338 compared with 223), according to Irving Levin Associates. This year could beat last year’s dollar volume, however. About $13.6 billion worth of senior housing and care properties changed hands so far this year, compared with $14.4 billion for the entirety of 2016.


Written by Tim Regan

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