The number of publicly announced seniors housing and care acquisitions in the second quarter of 2019 topped 100 transactions for the fifth quarter in a row, with 115 total transactions announced, based on new acquisition data from Irving Levin Associates. This represents a 1.7% drop from the 117 transactions announced in both the first quarter of 2019 and the second quarter of 2018. Dollar volume rose about 60% from $2.7 billion in the first quarter to $4.3 billion in the second quarter of 2019.
Once again, private senior care operating companies dominated the M&A market, making 65% of the quarter’s acquisitions and driving the record-pace of dealmaking so far in 2019. REITs were the next most-active investors, accounting for 17% of the deals, while 16% were announced by private equity firms and private real estate investors. The Ensign Group announced five separate transactions consisting of nine total properties in the second quarter, making it the most prolific buyer. Two REITs, Invesque and Welltower, followed with four announced acquisitions, each.
Seniors housing, consisting of independent living, assisted living and memory care properties, captured much of the sector’s focus this quarter, accounting for 60% of the announced acquisitions and taking nine of the top-ten deals, by price. “Despite weaknesses in the seniors housing operating environment, from higher labor costs to lower census, buyers continue to take advantage of abundant and cheap capital to grow their portfolios,” stated Ben Swett, Associate Editor of The SeniorCare Investor. “Meanwhile, the skilled nursing market is increasingly bifurcated between older, traditional skilled nursing facilities and newer transitional care facilities. Investors are either pouring money into transitional care for its higher margins or making value-add acquisitions in the traditional SNF market.”
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 two separate reports: The Seniors Housing Acquisition and Investment Report, and The Skilled Nursing Acquisition and Investment Report. These comprehensive reports each have more than 150 pages of transaction details and valuation statistics. For information, or to order the reports, 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 M&A markets.