Deal activity has been fairly consistent the past three quarters or so, with no major surprises. Many investors are waiting on the sidelines for the right acquisition to come along, especially the large deals, which have been in decline in recent years.
NORWALK, Conn. (PRWEB) April 17, 2018
The number of publicly announced seniors housing and care acquisitions in the first quarter of 2018 was nearly identical to the year ago quarter (77 compared with 76), but up slightly from last year’s fourth quarter (70). The dollar value of those transactions was $1.735 billion, up 20% from the year-ago quarter, but down sequentially, according to new acquisition data from Irving Levin Associates.
“Deal activity has been fairly consistent the past three quarters or so, with no major surprises. Many investors are waiting on the sidelines for the right acquisition to come along, especially the large deals, which have been in decline in recent years,” stated Steve Monroe, Managing Editor of The SeniorCare Investor and Editor of The Senior Care Acquisition Report. “Occupancy continues to trend downward across the spectrum, which has some buyers worried, but demand remains very strong for those transactions under $100 million, often yielding a dozen offers,” Monroe added.
In the first quarter of 2018, 96 skilled nursing facilities and 85 senior living communities were sold with a total of just over 16,500 beds or units. Their average price per bed and per unit were in line with the averages for calendar year 2017. Private operators accounted for about 43% of the acquisitions, while private equity firms and other private real estate buyers accounted for 34%. REITs were buyers on just 17% of the transactions. Publicly traded operators announced just three acquisitions in the quarter, and their limited activity on the buy side has become the norm.
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 is celebrating 70 years of delivering exclusive M&A intelligence to its sophisticated audience of seniors housing and healthcare investors, and 2017 marked the third year in a row that the firm was recognized by Inc. 5000 as one of the fastest growing media companies in the country. The company 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.