The growth of the Big Three health care REITs is clear, as they have flooded the senior housing space with a slew of recent deals. But this continued rapid growth highlights risks that may force REITs to change their investment strategies, Fitch Ratings suggests. Recently, the REITs have shuffled the industry with billion-dollar transactions focused […]
Fitch Ratings
If there’s going to be a merger among the “Big 3” healthcare REITs, now’s the time to strike while the proverbial iron is hot, says a recent Bloomberg article. The Big 3 REITs—Ventas, HCP, and Health Care REIT—have played starring roles in many of the past few years’ senior living acquisitions, spending billions on (or with) […]
Healthcare REITs may start losing their competitive edge as a result of more harm than benefit stemming from the Emeritus-Brookdale merger announced last week. Historically, high credit ratings have given these REITs access to lower costs of capital, says global ratings giant Fitch in its outlook on the acquisition. But real estate investment trusts focused […]
After several rocky years post-recession, non-profit continuing care retirement communities have maintained a “stable” rating from Fitch Ratings since being improved from negative to stable in September, according to a 2014 Outlook on nonprofit CCRCs released by the agency. “Consistent financial performance over past two years has been helped by an operating environment that has significantly […]
Creative, aggressive marketing plans and increased capital spending contributed to boosting Fitch’s ratings outlook for not-for-profit continuing care retirement communities (CCRCs) from negative to stable as median ratios for investment grade borrowers were mostly stable in 2012. “As in the years since 2008, management teams utilized tight expense controls, creative marketing plans, and better skilled […]
Changes issued earlier this year by the Financial Accounting Standards Board (FASB) regarding refundable entrance fees for continuing care retirement communities (CCRCs) aren’t expected to impact community ratings, according to a new Fitch Ratings report, but consumer reassurance may be required as a result. The change has to do with whether income from refundable entrance fee […]
Credit ratings can be useful for senior living providers—even the smaller companies—for improving access to capital, gaining economic value through demonstrating financial health, and benchmarking performance against other similar organizations, said a group of panelists during an online senior living conference held in March, reports Healthcare Finance. “At its core, credit ratings provide transparency and […]
In the next year, Fitch Ratings expects the nonprofit healthcare systems and hospital sector to receive predominantly affirmative ratings, reflecting the industry’s ability to maintain profit margins and mitigate reimbursement fluctuations, according to its 2012 Outlook Report. However, rating or rating outlook changes that do occur in 2012 are more likely to be downgrades rather […]
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