Overseas buyers take an increasingly measured approach to U.S. seniors housing industry by cultivating partnerships with seasoned operators. By Jane Adler Cautious. Selective. Patient. These three words characterize today’s overseas capital sources seeking investments in U.S. seniors housing and skilled nursing properties. While foreign investment in the sector here has slowed, even in the best economic times the decision-making process is typically lengthy. The “tire-kicking” phase can last several years, potentially extended by the recent coronavirus outbreak. Overseas buyers are also still quite choosy. They’re focused on the best properties …
Investment
CHICAGO — In order to recognize the unique and unprecedented conditions of COVID-19’s impact on its triple-net-leased seniors housing tenants, healthcare REIT Ventas has established a rent deferral program for those care providers for the month of April. Under the program, certain seniors housing care providers who are Ventas tenants can defer 25 percent of their April 2020 payment obligation until Oct. 1 or receipt of government assistance. All amounts deferred are required to be used for operating expenses to care for seniors at Ventas communities. Ventas says these tenants …
REIT Roundup: Omega to Repurchase $200M in Stock, Welltower Receives $1B Loan, SNR Reports COVID-19 at Two Communities
by Jeff Shaw
As seniors housing REITs make quick moves to respond to the COVID-19 pandemic, several have announced changes to both protect shareholders and residents. For example, Omega Healthcare Investors (NYSE: OHI) has authorized a stock repurchase program totaling up to $200 million; Welltower (NYSE: WELL) has taken on a new $1 billion term loan; and New Senior Investment Trust (NYSE: SNR) has updated plans to contain the outbreak in two of its communities. OHI describes its move as a way to “enhance stockholder value and balance sheet,” as the company’s stock …
SEATTLE — The coronavirus pandemic has had a noticeable impact on seniors housing REIT stocks, particularly following the news of several outbreaks in skilled nursing facilities in and near Seattle. Stocks in nearly all industries have been falling amid the pandemic. According to data compiled by stock news site SeeekingAlpha, among the seniors housing REITs, Sabra Health Care (NASDAQ: SBRA) fell 15 percent; Welltower (NYSE: WELL) fell 12.7 percent; Omega Healthcare (NYSE: OHI) fell 11.1 percent; New Senior Investment Group (NYSE: SNR) fell 10.4 percent; Medical Properties Trust (NYSE: MPW) …
Investors should seek out managers with low turnover, local knowledge and solid standardized practices. By Jess Stonefield Market demographics are just one set of factors that impact a seniors housing investment. Another factor, and arguably a more important one, is the operator managing the senior housing community in which you invest. Operators are charged with managing the day-to-day business within the care community and play a significant role in determining the success of any given investment. As such, they need to be chosen carefully — more carefully than many investors …
CHICAGO — Ventas Inc. (NYSE: VTR) has closed Ventas Life Science and Healthcare Real Estate Fund, a vehicle for investing in core and core-plus life science, medical office and seniors housing real estate in North America. At inception, the fund has more than $700 million in assets under management and third-party equity commitments of approximately $650 million from global institutional investors. “This successful launch is a testament to the tremendous market opportunity within life science, medical office and seniors housing real estate,” says Debra Cafaro, chairman and CEO of Ventas. …
MADISON, N.J. — PGIM Real Estate has completed its capital raise for Senior Housing Partners VI (SHP VI), with a total of $996 million in commitments, primarily from institutional investors. PGIM Real Estate, based in Madison, is the real estate investment business of PGIM, the $1.3 trillion global investment management businesses of Prudential Financial Inc. (NYSE: PRU). SHP VI is the latest in PGIM Real Estate’s series of dedicated, closed-end funds designed to capitalize on investment opportunities in the seniors housing sector. The capital raise — the largest to date …
WESTBROOK, Maine — Boston Capital has invested in the development of Robert L. Harnois Apartments, a 61-unit affordable housing development for seniors in Westbrook, a suburb of Portland. The general partner is Westbrook Development Corp., based in Westbrook. Robert L. Harnois Apartments will serve seniors ages 62 or older earning 60 percent or less of the area median income (AMI). The five-story property is located near public transportation, a retail center and supportive services. Robert L. Harnois Apartments is Phase II of the adjacent Larabee Village, a 150-unit seniors housing …
Alliant Capital Invests in Blue Mountain Terrace Affordable Development Near Sacramento
by Jeff Shaw
WINTERS, Calif. — Alliant Capital has completed an investment in Blue Mountain Terrace, a 63-unit affordable seniors housing development in Winters, a rural city approximately 25 miles west of Sacramento. Domus is developing the community, which will serve those age 62 and older earning between 25 and 60 percent of the area median income. The size of Alliant’s investment was not disclosed. “California’s demand for affordable housing is high statewide,” says Dudley Benoit, executive vice president at Alliant Capital. “In particular, the need for quality housing for low-income seniors is …