Seniors housing and care M&A activity reached a new
quarterly record of 183 publicly announced transactions in the
second quarter of 2024, according to data from LevinPro LTC. That
is 21% higher than the 151 transactions recorded in the first
quarter of 2024, and 49% higher than the 123 deals in the second
quarter of 2023.
NEW
CANAAN, Conn., July 15,
2024 /PRNewswire-PRWeb/ -- The number of publicly
announced seniors housing and care acquisitions in the second
quarter of 2024 reached a new quarterly record of 183 deals, based
on new acquisition data from LevinPro LTC. This represents a
21% increase from the 151 transactions disclosed in the first
quarter of 2024, and a 49% increase from the 123 deals in Q2:23.
Additionally, the $2.2 billion spent
on Q2:24 transactions rose by 16.4% from the $1.89 billion spent on Q1:24 transactions and
increased by 49.7% from the $1.47
billion spent in the year-ago second quarter, based on
disclosed prices.
"Dealmaking has hit a remarkable pace so
far this year, despite a difficult capital markets environment and
persistently low valuations for most seniors housing assets."
"Dealmaking has hit a remarkable pace so far this year, despite
a difficult capital markets environment and persistently low
valuations for most seniors housing assets," stated Ben Swett, Managing Editor of The SeniorCare
Investor. "A belief that the capital markets environment will not
improve substantially anytime soon has convinced many property
owners to sell now, rather than later."
When annualized, Q2:24's M&A activity would set a new yearly
record of 732 transactions, surpassing the previous high of 559
transactions set in 2022 by about 30%. Moreover, it would exceed
the 509 publicly announced deals recorded in 2023. To read more on
this, check out "H1 M&A Exceeds 330 Transactions" in July's
issue of The SeniorCare Investor, a copy of which can be found
here.
Assisted living deals made up the plurality of Q2:24 deals,
accounting for 45%, followed by skilled nursing at 35%. Independent
living deals comprised approximately 11% of the quarter's total,
affordable senior apartments took a 5% share and CCRCs and active
adult deals accounted for 3% and 1%, respectively. Also, there were
485 properties involved in Q2:24's deals for a property-per-deal
ratio of 2.7, which is higher than Q1:24's property-per-deal ratio
of 2.2.
"Interest in skilled nursing facilities remains strong among
investors, and valuations are still above pre-pandemic averages,"
added Swett. "Following the Supreme Court's recent decision
overruling the Chevron doctrine, the future of a minimum staffing
mandate looks bleak, as well, which is another benefit to
investors."
All long-term care M&A deals dating back to 1993 can be
accessed on the LevinPro database and can be purchased via a site
license. In addition, annual results of the seniors housing and
care acquisition markets will be published this year in the 29th
Edition of The Senior Care Acquisition Report. For information, or
to subscribe, call 800-248-1668. Irving Levin Associates was
established in 1948 and has offices in New Canaan, Connecticut, and North Bethesda, Maryland. The company
publishes research reports and newsletters, and maintains databases
on the healthcare and seniors housing M&A markets.
Media Contact
Ben Swett, Irving Levin
Associates, (203) 803-4593, swett@levinassociates.com,
https://www.levinassociates.com/
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SOURCE Irving Levin Associates