Covid-19 will continue to drag on senior housing operations and net operating income (NOI) until vaccines are widely distributed, and NOI is expected to reach new lows in mid-2021. From there, demographic trends will result in a gradual rebound in NOI, but low supply barriers will limit growth upside, and NOI is not expected to […]
Green Street Advisors
For much of the past 20 years, capital expenditure allocations in senior living have been largely trapped in amber. That has changed in recent years. Faced with aging buildings and competition from new communities and operators, CapEx spends have grown gradually since 2015, and even buildings delivered within the past decade are undergoing renovations, Green […]
Publicly traded senior housing owners and operators begin reporting their Q1 2020 earnings next week, but these financial results will be essentially irrelevant due to Covid-19. Analysts, investors and senior living professionals hope that the earnings reports and comments from executive teams will provide a clearer sense of Covid-19’s effects on the industry and what […]
Senior housing occupancy could fall by as much as 50% this year due to Covid-19 — as Bloomberg reported — but this is a worst-case scenario, according to BMO Capital Markets Analyst John Kim. Less dramatic occupancy declines are more likely, yet even these relatively gentler drops could put occupancy at historically low levels. BMO […]
Senior living providers are working around the clock to address an increasing number of Covid-19 cases and prevent further infections — and these efforts come at a steep cost from a dollars-and-cents perspective. The industry as a whole is facing an adverse economic impact of between $40 billion and $57 billion over the next 12 […]
The senior housing industry is facing steep challenges that shift each day as the Covid-19 pandemic spreads and the nation’s response evolves. In this dynamic environment, making predictions could be a fool’s errand, yet owners, operators and investors are seeking some basis around which to craft strategies. With this in mind, here are three scenarios […]
Earlier this year, there were signs that the senior housing industry was on its way to a recovery, following a period of oversupply and other headwinds. Then came Covid-19, the disease caused by the so-called novel coronavirus that has sickened at least 100,000 people, roiled economic markets and has disrupted daily life across the globe. […]
COVID-19, the viral disease also known as the “novel coronavirus,” is spreading around the globe. Senior living providers, including Brookdale (NYSE: BKD) and Affinity Living Group (ALG), are preparing for a possible worst-case scenario. While both Brookdale and Affinity are large companies, small providers could face even more dire consequences if the virus infiltrates their […]
The steady stream of new senior housing inventory coming online through the mid-2020s has put pressure on operators to maintain occupancy. It is also focusing owners and operators to face the fact that historical trends in CapEx spending need to change. Operators have been getting away with penciling in smaller allocations from their annual budgets […]
Irvine, California-based Sabra Health Care REIT (Nasdaq: SBRA) is on the hunt for an investor to take a minority stake in a portfolio of 170 senior living communities operated by Chicago-based Enlivant. Sabra purchased a 49% equity stake in the portfolio in 2017, in a deal that valued the overall portfolio at $1.2 billion. The […]