PDPM Adjustments, Smaller Medicare Raise Show CMS ‘Ready to Pull Back’ on COVID Aid to Nursing Homes

As the federal government’s approach toward nursing homes and COVID-19 continues to shift from emergency support to reflection and reform, analysts are increasingly warning that the coronavirus-era gravy train could soon come to an abrupt stop. In particular, the past week has brought three pieces of news that may signal trouble ahead for operators and […]

CareTrust Picks Up Southern California Nursing Facility for $15.9M; Eastern Union’s $57M Bridge Financing

CareTrust REIT (Nasdaq: CTRE) acquired the Buena Vista Care Center, a 150-bed skilled nursing facility in Santa Barbara, Calif., for about $15.9 million, including transaction costs, the real estate investment trust announced March 9. The facility will continue to be operated by Covenant Care under a long-term lease assumed by the San Clemente, Calif.-based CareTrust […]

Walker & Dunlop’s $172M Skilled Nursing Financing; Aspen Skilled Healthcare Picks Up CCRCs

Walker & Dunlop this week announced the completion of $172 million in financing for a seven-building skilled nursing portfolio across the Northeast and the Midwest. Four of the properties were refinanced through the Department of Housing and Urban Development’s (HUD) 232/233 program, with the remaining three undergoing HUD 232 loan modification. The portfolio consisted of: […]

LTC Properties Upbeat on Genesis Leases, Predicts Decline in Home Health Diversions from SNFs

Executives at LTC Properties (NYSE: LTC) on Friday struck an upbeat tone about some of the top pressure points for health care real estate investment trusts (REITs) amid the ongoing pandemic, including a troubled tenant and the significant shift of patient volume to home health. Genesis HealthCare (NYSE: GEN), the nursing home giant that spurred […]

CareTrust: Home Health Diversions Will ‘Recalibrate’ With Time, But Uneven Post-COVID Recovery Lies Ahead

Executives at CareTrust REIT (Nasdaq: CTRE) expect to see hospital referrals to skilled nursing facilities eventually return, with executives arguing that a recent spike in diversions to home health is unlikely to become permanent. Eventually, the referral destinations for post-acute patients are going to stop coming out so lopsidedly in home health’s favor, according to […]

With Strong Financials and Patient Mix, Ensign Looks to Flex Real Estate Muscle Outside of Operations

Nursing home operator The Ensign Group (Nasdaq: ENSG), fresh off of a year of solid operational results that prompted another complete return of federal aid, on Thursday indicated a growing push to capitalize on the value of its owned real estate. The San Juan Capistrano, Calif.-based operator reported net income of $46.3 million in the […]

Skilled Nursing to Bounce Back Faster than Senior Living, But REITs Have ‘Lost Their Patience’ with Genesis

BMO Capital Markets this week downgraded its outlook for several publicly traded landlords of senior housing and skilled nursing facilities, but post-acute care emerged as a rare bright spot in the analysis — with the prediction that the sector will recover faster than its senior living counterparts. The financial services provider issued downgrades to Welltower […]

CareTrust’s $47.6M Texas Portfolio Purchase; New Management for Five Genesis SNFs in Vermont

CareTrust REIT (Nasdaq: CTRE) acquired four post-acute care facilities in the Dallas-Fort Worth area for $47.6 million, inclusive of transaction costs, in an off-market deal, the San Clemente, Calif.-based real estate investment trust (REIT) announced last week. The portfolio includes 554 skilled nursing beds and 24 assisted living beds across Beacon Harbor Healthcare & Rehabilitation […]

Stapley: Federal Relief to Sustain CareTrust’s Skilled Nursing Tenants for Multiple Quarters

Senior living and skilled nursing landlord CareTrust REIT (Nasdaq: CTRE) on Friday projected a relative period of financial calm ahead for the sector as emergency Department of Health and Human Services (HHS) funding continues to insulate its tenants from serious hardships. “The HHS provider relief funds appear to be providing our skilled nursing operators with […]

CareTrust Grows with Eduro in $16.5M Off-Market Deal; Houston SNF Sells for $4.3M

The Villa Toscana at Cypress Woods, a 120-bed skilled nursing facility in a Houston suburb, was sold to the SNF-focused private equity firm O&M Investments for $5.3 million. The transaction was handled by the Chicago-based senior living brokerage firm Heavenrich & Company on behalf of a publicly traded real estate investment trust (REIT) and owner-operator […]

Skilled Nursing M&A Remains Active: Investors Don’t ‘Have a Better Place to Put Their Money’

The ongoing pandemic has rightfully shifted attention away from dealmaking in the long-term and post-acute care space, but several leaders have expressed optimism that investors will support the sector moving forward — though the influx of federal cash keeping operators afloat could scramble valuation math for some time to come. With overall uncertainty in the […]

CareTrust: COVID Response Proves State, Federal Leaders ‘Will Not Allow the Industry to Fail’

For many potential skilled nursing investors, the threat of government action — either through new regulations or wholesale changes to payment models — has represented one of the largest risks. But while COVID-19 has brought unprecedented operational strain to nursing homes across the country, leaders at major health care landlord CareTrust REIT (Nasdaq: CTRE) believe […]

CareTrust Keeps 2020 Guidance Amid COVID-19: ‘There is a Possible Path Through This’

Several of the major health care real estate investment trusts (REITs) have responded to the challenges and upheaval of the COVID-19 pandemic by withdrawing their earnings guidance for the year — a move that’s entirely understandable given the number of unknowns about the impact of the resulting emergency on tenants. But the San Clemente, Calif.-based […]

REIT Stocks Fall Again After Reports of New Nursing Home Coronavirus Case

Another skilled nursing facility in the state of Washington has reported an outbreak of COVID-19, the disease caused by the novel coronavirus that is sweeping the globe — resulting in major declines in the stock prices of several real estate investment trusts (REITs) with holdings in the skilled nursing and senior housing sectors. That facility, […]

CareTrust Pulls Off $36M Metron Sale, Doesn’t See PDPM Upheaval Ahead

CareTrust REIT (Nasdaq: CTRE) on Friday announced the successful sale of six skilled nursing facilities operated by Metron Integrated Health for $36 million, observed a slight uptick in skilled nursing pipeline M&A after a slowdown in the wake of the Patient Driven Payment model (PDPM), and pointed to reducing worry about a controversial plan to […]

Ensign Rides High-Acuity Skilled Nursing Model to 6% Rate Gains Under PDPM

The Ensign Group (Nasdaq: ENSG) on Thursday announced that its skilled nursing facilities have seen rate increases of up to 6% under the new Medicare payment model, in part helping to drive the post-acute leader to another set of record earnings. The company’s established same-store facilities achieved those 6% gains, while Ensign’s transitioning facilities — […]

CareTrust to Sell 6 Michigan SNFs for $37M After Operator Stops Paying Rent

CareTrust REIT (Nasdaq: CTRE) on Friday announced a pending $37 million deal to sell six skilled nursing facilities in Michigan after the associated operator indicated its intention to leave the buildings — and also stop paying rent during the transition. The San Clemente, Calif.-based real estate investment trust (REIT) discovered this past quarter that Metron […]