Senior Housing M&A Volume Drops 52% Year-Over-Year

The third quarter of 2017 saw greater transaction volume in skilled nursing than in senior housing, as well as a 52% drop in senior housing transactions year-over-year, according to a blog post by Bill Kauffman, senior principal at the National Investment Center for Seniors Housing & Care (NIC).

In the third quarter of 2017, seniors housing and care transaction volume totaled $4.6 billion—a 113% increase from the second-quarter 2017 transaction volume of $2.2 billion, but a slight drop from the $4.7 billion in transaction volume recorded in the third quarter of 2016.

The third quarter was a busy time in the skilled nursing world. Of the $4.6 billion, seniors housing transactions comprised $1.3 billion, whereas nursing care comprised $3.3 billion.

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Seniors housing transaction volume is down about 52% from the second quarter of 2016, Kauffman notes.

On the whole, though, transaction volume in 2017 is proceeding similarly to 2016.

The seniors housing and care transaction volume recorded during the first three quarters of 2016 totaled $11.1 billion, which is only slightly less than the $11.5 billion recorded during the first three quarters of this year, Kauffman writes.

One of the noteworthy deals that contributed to this year’s transaction volume was the third-quarter acquisition of Care Capital Properties by Sabra Health Care REIT (Nasdaq: SBRA) for $2.1 billion. 

Written by Mary Kate Nelson

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