Market Overview

Seniors Housing And Care M&A Volume Surges In Q2:2018


Seniors Housing And Care M&A Volume Surges In Q2:2018

The number of publicly announced seniors housing and care acquisitions in the second quarter of 2018 surged by 30% compared with the first quarter, and by 35% compared with the second quarter of 2017. The dollar value of the second quarter's acquisitions was 3.5 times the level in the first quarter, according to data from Irving Levin Associates, Inc.

PR Newswire

NORWALK, Conn., July 23, 2018 /PRNewswire-PRWeb/ -- SENIORS HOUSING AND CARE M&A VOLUME SURGES IN Q2:2018,



The number of publicly announced seniors housing and care acquisitions in the second quarter of 2018 surged by more than 30% compared with the first quarter of 2018, and by 35% compared with the year-ago second quarter. In this year's second quarter there were 106 publicly announced acquisitions (81 in Q1:18 and 78 in Q2:17) worth a total of $6.3 billion based on disclosed prices, or nearly 3.5 times the dollar value in the first quarter, based on new acquisition data from Irving Levin Associates. The 106 acquisitions are just below the record set in 2015 for a single quarter.

Driving the acquisition volume was portfolio sales of three or more properties. There were 27 portfolio sales in the second quarter, accounting for 25% of all sales, and 23 of those portfolio sales involved the sale of skilled nursing facilities. In addition, just over 55% of the second quarter's transactions involved the sale of skilled nursing facilities, with the remaining 45% coming from the private pay seniors housing side.    

"People have been writing off the skilled nursing business for years, but the fact that the vast majority of the dollars spent and properties bought were skilled nursing demonstrates that there is still tremendous investor demand for nursing facilities," stated Steve Monroe, Managing Editor of The SeniorCare Investor and Editor of The Senior Care Acquisition Report. "The main reason for the spike in the sale of skilled nursing portfolios was the divestiture by several REITs of many of their skilled nursing assets as they changed their investment goals."    

In the second quarter of 2018, publicly traded operating companies announced fewer than 5% of the 106 acquisitions, while private operating companies accounted for nearly 50% of all acquisitions. Private equity and private investors were responsible for 29% of the transactions, while REITs made up just over 12%. "While they don't usually do the large, $100 million-plus acquisitions, private operators are hungry for acquisitions while capital availability remains high and it is still relatively cheap. Everyone thinks the PE firms dominate the market, but that is just for the big transactions, " stated Monroe.                    

All quarterly results are published in The Health Care M&A Report for all 13 sectors of health care, which is part of the In addition, results of the seniors housing and care acquisition market are published annually in The Senior Care Acquisition Report, a comprehensive report with more than 250 pages of transaction details and valuation statistics. For information, or to order the report, 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.

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Phone: (203) 846-6800Steve Monroe, Managing Editor

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SOURCE Irving Levin Associates

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