Welltower’s total senior housing operating portfolio occupancy declined approximately 220 basis points during the fourth quarter, falling from 78.4% to 76.2%, according to a business update released Tuesday by the Toledo, OH-based real estate investment trust. Occupancy has declined an additional 85 basis points month-to-date, dropping to 75.3%.
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.
As ground zero for the pandemic, 2020 was a challenging year for healthcare real estate investment trusts. In the first quarter, for example, healthcare REITs saw a 36.8% decline — much of this stemming from COVID-19-related woes within the senior living and skilled nursing sectors. Recent positive news on vaccine approval and its subsequent rollout within the sectors helped healthcare REITs regain a good chunk of this loss, however, ending the year at a 9.8% decline compared with 2019, according to Nareit daily returns.
Responding to a worsening pandemic, Argentum assembled a working group of clinical experts to address key COVID-related challenges to help guide its assisted living members.
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.
Market ripe for senior living development: Radius Realty CEO … Seniors housing operating costs likely to remain high post-pandemic: Motley Fool … Ensign Group acquires 82-bed Texas SNF … Brandywine Living completes acquisition of two NJ assisted living communities through partnership with Welltower … Diversicare selects Reliant Rehabilitation as therapy services providers … United Church Homes joins Link•Age ownership group
During his first earnings call as CEO of Welltower, Shankh Mitra said the Toledo, OH-based real estate investment trust’s strategy will not change.
Despite the ongoing negative effects of the pandemic on Welltower’s financial results and seniors housing occupancy, the Toledo, OH-based real estate investment trust beat analysts expectations with regard to its third quarter earnings.
Welltower likely to announce year-over-year decline in this week’s third-quarter earnings report: Zacks … Committee for Economic Development of The Conference Board awards Corporate Citizenship Award to Brookdale CEO Cindy Baier … Enterprise Community Development and Fellowship Square Foundation break ground on $86M senior housing redevelopment in Reston, VA … Berkadia secures $19M in financing for Maryland senior living community … Monticello provides $1.25M in working capital financing for a 181-bed PA SNF … MedCore Partners and TNRG begin construction on Texas senior living community
Appointments and promotions at AHCA / NCAL, AHEPA, Bane Care Management, Cadence Living, Cypress Cove, Harmony Senior Services, Integral Senior Living, Legend Senior Living, Life Enriching Communities, Nazareth Home, Oakmont Senior Living, Presbyterian Senior Living, RMR Group, Senior Star, Sequoia Living, The Springs Living, United Hebrew of New Rochelle and Welltower.
