Seniors Housing and Care M&A Volume Stable in Q3:2017, According to Acquisition Data from HealthCareMandA.com

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The number of publicly announced seniors housing and care acquisitions in the third quarter of 2017 remained the same as the year-ago quarter, but dipped slightly from the second quarter of 2017.

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Despite all the headwinds facing the skilled nursing sector, there is still tremendous investment appetite for the sector

The number of publicly announced acquisitions in the seniors housing and care M&A market remained stable in the third quarter of 2017, with 71 announced transactions, down slightly from the second quarter (76 acquisitions), but identical to the third quarter of 2016. The dollar volume, however, posted a significant decline from the second to third quarter, plunging from $9.7 billion to $2.5 billion, according to new acquisition data from HealthCareMandA.com. Two large acquisitions announced in the second quarter accounted for that unusually large dollar amount in the quarter. Without them, the second quarter total would have been closer to $3.1 million.

“There had been a noticeable absence of large transactions in the market until the second quarter, but the market returned to the ‘new normal’ by the third quarter,” commented Steve Monroe, Managing Editor of The SeniorCare Investor and Editor of The Senior Care Acquisition Report. No announced acquisition in the third quarter topped the billion-dollar level.

Sabra Health Care REIT announced one of the mega deals in the second quarter, and they were back at it with two of the largest acquisitions in the third quarter. The largest of the two was the purchase of a 49% interest in a portfolio of senior living properties managed by Enlivant for an approximate total transaction value of $794 million, inclusive of assumed debt. Sabra followed that acquisition with the purchase of 24 skilled nursing facilities for $430 million. These two transactions accounted for nearly 50% of the total dollars invested in the third quarter.

Even though the private pay seniors housing market has been the most popular over the past several years, 46% of the targeted acquisitions in the third quarter were individual skilled nursing facilities or portfolios, an increase from 43% in the second quarter. “Despite all the headwinds facing the skilled nursing sector, there is still tremendous investment appetite for the sector,” stated Mr. Monroe.

All quarterly results are published in The Health Care M&A Report for all 13 sectors of health care, which is part of the HealthCareMandA.com. In addition, results of the seniors housing and care acquisition market are published annually in The Senior Care Acquisition Report, a comprehensive report with more than 250 pages of transaction details and valuation statistics. For information, or to order the report, call 800-248-1668. Irving Levin Associates, Inc. was established in 1948 and has headquarters in Norwalk, Connecticut. The company publishes research reports and newsletters, and maintains databases on the healthcare and seniors housing markets.

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Kate Wentworth
Irving Levin Associates
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