Seniors Housing and Care M&A Activity Sets Record in 2024

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Seniors Housing and Care M&A Activity in 2024 Breaks Record

In a surprising turn of events, 2024 saw a remarkable surge in seniors housing and care M&A activity, setting a new record. The total number of publicly disclosed transactions skyrocketed to 703, marking a substantial 26% increase from the previous record of 560 transactions in 2022.

The fourth quarter of 2024 alone saw 182 publicly announced transactions, according to data from LevinPro LTC. This represents a modest 0.55% uptick from the 181 transactions in the third quarter of 2024 and a noteworthy 20% surge from the 152 deals in the fourth quarter of 2023.

One of the contributing factors to this heightened activity was the decline in interest rates and an improved operating environment, enticing buyers to pursue more acquisitions than ever before. The total spending on transactions in Q4:24 amounted to $3.13 billion, reflecting a 2.6% increase from the previous quarter.

The Senior Care Acquisition Report, to be released soon, will shed more light on the average valuations for senior care properties in 2024. This report will detail average per-unit prices, cap rates, and other essential metrics relating to senior care properties.

In terms of the breakdown of deals, seniors housing took the lead, accounting for 64% of the total transactions, with skilled nursing making up the remaining 36%. This distribution was a departure from the previous year, where seniors housing accounted for 66% and skilled nursing for 34% of the deals in 2023.

Skilled nursing deals were the predominant form of transactions in Q4:24, making up 44% of the total, closely followed by assisted living at 38%. Independent living deals constituted about 8%, while CCRCs, affordable senior apartments, and active adult communities made up smaller portions of the deals.

Despite challenges like high capital costs and liquidity constraints, 2024 emerged as a robust year for seniors housing and care M&A activity, paving the way for future growth and development in the sector.

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