Operating margins are shrinking, with cap rates becoming harder to calculate and in-place cash flows lower than pre-pandemic levels. The September 22 webinar “The Great Squeeze — Vanishing Seniors Housing Operating Margins,” focused on the bottom line for industry owners and operators. The panel discussion, hosted by Seniors Housing Business and sponsored by Valuation & Information Group, sought to shed light on valuation impacts, debt, interest rates and equity.
“In the early months of the pandemic, interest rates decreased. Cap rates for well-performing senior housing projects hit new lows. Meanwhile, in the skilled nursing market, we’ve seen large, publicly traded institutions disposing of facilities. However, private buyers have been stepping up and setting record prices in many states. Two-and-a-half years after the pandemic started, the economic dust hasn’t settled, and we don’t yet have clear expectations of what the next year will hold,” says JP LoMonaco, president of Valuation & Information Group.
Listen in as expert panelists talk operations recovery, transaction activity, revenue growth and inflation. Plus, see below for timestamps for important topics within the discussion.
Timestamps of topics covered:
- (4:30) Occupancy: strategic stabilization operations, current NOI margins, building to pre-pandemic levels
- (14:18) Investment activity and transaction volume
- (25:43) Debt, interest rates and equity
- (29:19) Investor return expectations
- (30:41) Investment criteria
- (35:56) What’s more important cap rates or cash flows?
- (45:27) Smart investments and opportunities going forward
Panelists:
- JP LoMonaco, Valuation & Information Group (moderator)
- Rich Lerner, NewPoint Real Estate Capital
- Jeff Fischer, MBK Senior Living
- Kelly Sheehy, Artemis Real Estate Partners
- Ryan Chase, Blueprint Healthcare Real Estate Advisors
Webinar sponsor: Valuation & Information Group: A recognized leader in valuation and financial consulting, servicing clients nationally.
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