The third quarter of 2023 marked the lowest quarterly spend on senior housing and care acquisitions in the last decade.
That’s according to newly released data from LevinPro LTC, which showed 115 total deals for the quarter, of which 41% were skilled nursing transactions.
SNF deals trailed only assisted living, which accounted for 49% of the quarterly total.
The Q3 2023 deals represented $700 million of spending, compared to $1.29 billion spent on Q2 2023 transactions and $3.87 billion spent on Q3 2022 transactions. That’s an 82% year-over-year decline, according to a LevinPro press release issued Tuesday.
The most recent quarterly deal total of 115 was the lowest since Q3 2021, when 111 deals in the sector were publicly announced. This demonstrates the dampening effect of current high interest rates, according to the press release.
With 265 properties involved in the Q3 2023 deals — for a property-per-deal ratio of 2.3 — average deal size continued to decline from a peak of 6.6 properties per deal in Q2 2021.
Earlier this year, several M&A professionals predicted to SNN that skilled nursing deal volume could reach “exorbitant” levels in the second half of 2023. The LevinPro data seems to show that a different scenario has played out, at least thus far.
Still, dealmaking in the space continues to occur. VIUM Capital recently announced the closure of nine financing transactions in Q3, totaling $175 million. Six of the deals involved SNFs.
And in a recently announced transaction, PruittHealth acquired three skilled nursing centers in Georgia.
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