As the economy begins to reopen, many investors are wondering what to expect from the not-for-profit senior living marketplace. According to Dan Hermann, president of CEO of specialty investment bank Ziegler, the negative financial effects likely are to be relatively minimal for higher-rated entities — particularly those with diversified communities in multiple markets.
Hermann and colleagues shared their perspectives on current market conditions during a webinar Friday, pointing to an influx of high-grade borrowers accessing the market again last week at attractive market rates.
“As we’ve monitored the occupancy and financial stats just in the last six weeks, it appears that this will be a short-term aberration of multiple weeks in the scheme of a long-term organization,” he said.
The firm also advised borrowers to continue communicating with investors about facility virus case statistics, safety protocols, sales and occupancy — as well as construction project updates or delays, if applicable. Providing financial updates, particularly around how the virus is impacting liquidity, also will help ensure proper ratings can be ascertained.