Senior housing mergers and acquisition activity rose 11% in the second quarter compared to the previous quarter of 2023 — but the volume remains 25% lower than deals recorded in the second quarter of last year.
That’s according to new data published this week by LevinPro LTC. There were 110 publicly-announced transactions in the second quarter of this year, up from the 99 transactions reported in 1Q23. Second-quarter transactions were down from 147 in the same period last year, the newly released data shows.
The 110 transactions reported in the second quarter was the second-lowest quarterly deal total since the first quarter of 2021, when 85 deals were publicly announced. Assisted living deals accounted for 42% of the activity in the second quarter, followed by skilled nursing at 36% and independent living accounting for 10%. CCRCs and affordable housing deals accounted for 13% of 2Q23 transactions.
The $1.29 billion spent on transactions in the quarter fell by 4% compared to $1.34 billion spent on 1Q23, and fell nearly by two-thirds from the $3.5 billion spent in 2Q22.
The LevinPro data shows there were four transactions with more than 10 properties each in the sale, down from nine in the first quarter of this year and 23 deals with three or more properties.
Tough challenges around securing debt financing and the threat around the U.S. Federal Reserve raising interest rates again before the end of the year could be driving the slowdown in M&A activity.
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