Transactions & Financings: ‘Big 3’ REITs in Fed’s Bond Buying Program; Ziegler’s $278M Deal Volume

Federal Reserve’s bond-buying program includes Welltower, Ventas, Healthpeak Welltower (NYSE: WELL), Ventas (NYSE: VTR) and Healthpeak Properties (NYSE: PEAK) are among the real estate investment trusts receiving funding as part of the Federal Reserve Bank of New York’s Secondary Market Corporate Credit Facility (SMCCF), The Real Deal reported. The program, established as part of the […]

Transactions & Financings: Healthpeak’s $600M Senior Note Offering; Resort Lifestyle Communities $36M Construction Loan

Healthpeak Prices $600M in Unsecured Senior Notes Healthpeak Properties (NYSE: PEAK) announced a public offering of $600 million aggregate principal amount of 2.875% senior unsecured notes due 2031. The price to investors was 99.125% of the principal amount of the notes. Healthpeak plans to use the net proceeds from the offering to fund the redemption […]

Life Plan Communities Face Risks After Withstanding Early Covid-19 Pressures

Nonprofit life plan communities — particularly those with stronger credit ratings — have done an effective job of keeping Covid-19 at bay and are withstanding immediate financial pressures. However, the sector as a whole still faces numerous challenges and uncertainties as the pandemic drags on. This was the message delivered Tuesday by Fitch Ratings, in […]

CCRCs’ Covid-19 Plans Must Handle Large Campuses, Complex Operations

Continuing care retirement communities face unique challenges in responding to the Covid-19 pandemic. Their large sizes, multiple entry points, varying levels of care acuities and layers of government regulations place added pressures on ensuring the safety of residents and containing the spread of the virus if someone tests positive. But providers can adapt their communicable […]

Residential Real Estate Values Complicate Life Plan Communities’ Stable Outlook

Non-profit life plan communities can expect another year of stability in 2020, but there are some factors that could complicate the landscape in the future. That’s according to a new report from Fitch Ratings, which on Wednesday released its annual outlook for U.S. not-for-profit life plan communities. As in previous years, those communities should expect […]

CCRC Margins Decline, Long-Term Outlook Remains Stable

Liquidity metrics and net operating margins at U.S. continuing care retirement communities dipped in 2018, driven by an increase in capital spending and a volatile equity market, according to a new report from Fitch Ratings. Median core operating performance decreased to 5.9% in 2018, compared to 7.2% the previous year. Net operating margins, meanwhile, dropped […]

Non-Profit CCRCs Can Expect Tailwinds to Persist Into 2019

The 12-month outlook ahead for non-profit continuing care retirement communities (CCRCs) looks steady, with continued demand for this type of senior living. Specifically, non-profit CCRCs are expected to benefit from favorable demographic trends and healthy residential real estate markets, both of which are pushing up demand for those communities, according to a new report from Fitch Ratings. […]

CCRC Margins, Liquidity Improve Despite Operational Challenges

Liquidity and overall margins have improved for U.S. continuing care retirement communities (CCRCs), driven in large part by strong investment returns. For the 102 CCRCs that Fitch Ratings has deemed investment grade, the median net operating margin decreased slightly between 2016 and 2017, dropping from 7.9% to 7.2%. However, the excess margin jumped from 1.7% […]