VOLUME 37 | ISSUE 9
Inside the World of Senior Care Mergers, Acquisitions and Finance Since 1948
Seniors Housing Values Jump 25% SEPTEMBER 2025
Higher Quality Assets Are Hitting the Market
The improving capital markets and operating
G
environment are helping to draw owners of high-quality, well-performing seniors housing properties to the M&A market. If cap rates start to compress, then we may start seeing record-breaking per-unit prices soon. See article at right
Skilled Nursing Values Times are pretty good for skilled nursing facilities, as many states have offered more generous Medicaid rates. That is helping to raise prices for SNFs, but the long-term
iven all of the optimism surrounding the operating environment in seniors housing, from national occupancy gains to historic resident rate increases to better expense controls, we would expect prices to be rising for assets of all types and qualities, on an apples-to-apples basis. An analysis of LevinPro LTC’s proprietary deal database shows that, indeed, prices have risen on average for seniors housing properties in the most recent four-quarter period. And it may be the start of a rise that will begin setting records soon. That previous pricing record was set in 2019, when the average price for seniors housing properties, comprising both independent living and assisted living/memory care properties, hit $244,200 per unit. The market readjusted to a post-COVID world of lower census and higher risk, but it was the sudden and steep rise of interest rates that depressed pricing the
fundamentals of the business may be the
continued on page 22
main driving factor for buyers. See article at right
Skilled Nursing Acquisitions.............Page 4 Seniors Housing Acquisitions...........Page 8 Agency Loans...................................Page 17 Conventional Loans.........................Page 19 Acquisition Loans............................Page 22 Bond Financings..............................Page 26 People on the Move.........................Page 27
Visit us Online: www.seniorcareinvestor.com SeniorCare_Inv
Skilled Nursing Values on the Rise A Favorable Reimbursement Environment Is Helping
W
ill there ever be a better reimbursement environment for skilled nursing facilities? Well, it is tough to beat the golden age of the sector in the 1990s when facilities were reimbursed by Medicare and Medicaid largely based on their reported costs, subject to some caps and efficiency parameters. Other costs like therapy, staffing and administrative overhead were also reimbursed, and there were few incentives to economize, or to get creative at all. Many states also used a cost-based reimbursement system for Medicaid. It was a predictable and lucrative system, and facilities often exceeded 15% and 20% operating margins. Medicare SNF days were also growing substantially at the time as post-acute care utilization expanded. That’s when we saw many publicly traded providers like Genesis HealthCare, Sun Healthcare, Integrated Health Services and Mariner Health Group continued on page 2