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Ventas

BMO Capital Markets predicts elongated seniors housing recovery, changes outlooks for REITs

Although the COVID-19 vaccines are expected to become more widely available as the first quarter continues, investment banking firm BMO Capital Markets is predicting an elongated recovery for the senior living industry, with cash flows not recovering to pre-pandemic levels until about 2025. That’s according to an analysis released Thursday by the firm.

Healthcare professional in protective gloves & workwear holding & organising a tray of COVID-19 vaccine vials. The professional is carrying out researches on COVID-19 vaccine in laboratory.

Vaccine news boosts analysts’ views on skilled nursing; concerns remain around future of seniors housing: Mizuho

As Nareit’s REITworld: 2020 Annual Conference wrapped up last week, analysts at Mizuho Securities USA say they remain positive on the skilled nursing sector given the promising vaccine news, strong government support of the industry and an improving acquisitions outlook. And although the vaccine news also is a major positive for senior housing, analysts also worry that the recent rally in the sector’s stocks may be reflecting a far rosier recovery than likely is to occur, and that the 2021 earnings outlook may disappoint.

Economic impact of coronavirus outbreak deepens. Bar Charts step down on the world map which close up China and text coronavirus on a bar chart.

Ventas, Sabra exceed analysts’ third-quarter expectations, but continued occupancy concerns loom

Chicago-based Ventas reported third-quarter funds from operations of 75 cents per share Friday, coming in above analysts’ expectations for the real estate investment trust but still 22% lower than a year ago. Not surprisingly, the real estate investment trust’s senior housing properties continue to be significantly affected by the COVID-19 pandemic, with same-property earnings declining 42% in the quarter. Much of this decline was driven by lower occupancy rates and higher COVID-19-related expenses.

Business briefs for Monday, Sept. 21

Ventas declares third-quarter dividend of 45 cents per share … Novellus Living Group and CiminoCare take over the ownership and management of California assisted living facility … Kendal Corp. purchases 16 acres of land in northern CA for development of life plan community … Construction moving forward on renovation of former Illinois hotel into affordable seniors housing development

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