Seniors Housing and Care M&A Activity Soars 31% In Second Quarter of 2021, According to Acquisition Data from Irving Levin Associates, LLC

NEW CANAAN, Conn., July 20, 2021 /PRNewswire-PRWeb/ -- The number of publicly announced seniors housing and care acquisitions in the second quarter of 2021 rose to 109 deals, based on new acquisition data from Irving Levin Associates. This represents a 31% increase from the 83 transactions in the previous quarter and is 79% higher than the 61 deals made public in the second quarter of 2020. Also, the $6.74 billion spent on the second-quarter transactions increased by 138% from the previous quarter's total of $2.83 billion, representing 49% of the publicly disclosed spending in the last four quarters.

"The market seemed to turn a corner in June, when the three largest deals in two years were announced one after another in a three-week span," stated Ben Swett, Editor of The SeniorCare Investor. "But it was also the propensity of small and medium-sized deals disclosed in the quarter that better indicates the market's current good health."

There were 29 total portfolio deals with at least three properties per deal announced in the second quarter, more than any quarter since before the pandemic. Ventas' acquisition of New Senior Investment Group for $2.3 billion was the largest deal of the quarter. That was followed by a couple of transactions involving national operator Holiday Retirement, including Atria Senior Living's purchase of Holiday's operating business for an undisclosed price and Welltower's $1.58 billion purchase of Holiday's 86 owned communities. Ten total deals in the quarter featured 10 or more properties, leaving 19 separate transactions with between three and nine properties.

In terms of deals, independent living attracted the most attention thanks to the New Senior Investment Group and Holiday Retirement sales in particular, accounting for 61% of the properties sold in the quarter, despite IL making up just 9% of the deals. Assisted living deals took a 36% share of the quarter's activity, followed by skilled nursing at 33%. CCRCs were the next most popular sector with 9% of transactions, followed by active adult and affordable senior apartments, each accounting for 6% of deals.

"We can attribute much of this activity to the loosening of the lending market, too," added Swett. "With so much capital ready to deploy, debt and equity providers are much more comfortable getting behind deals, especially with the effectiveness of the vaccines against Covid-19 variants and if operators can point to several months of sustained census growth."

All long-term care M&A deals dating back to 1993 can be accessed on the LevinPro database and can be purchased via a site license. 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, annual results of the seniors housing and care acquisition markets were published this year in the 26th Edition of The Senior Care Acquisition Report. The comprehensive report has more than 300 pages of transaction details and valuation statistics. For information, or to order the reports, call 800-248-1668. Irving Levin Associates was established in 1948 and has offices in New Canaan, Connecticut, and North Bethesda, Maryland. The company publishes research reports and newsletters and maintains databases on the healthcare and seniors housing M&A markets.

Media Contact

Ben Swett, Irving Levin Associates, 203-846-6800, [email protected]

SOURCE Irving Levin Associates