A putative class action against the board of Advocat was dismissed from District Court earlier this month on procedural grounds, specifically because it did not satisfy the federal case requirement that the claim involved was for more than $75,000. But that doesn't mean the case, which centers on the buyout approach made by the Covington Investments group that owns about 15 percent of Advocat, is over: The plaintiffs can refile in state court if they choose.
Deutsche Bank analyst Darren Lehrich provided a nice pop to shares of Brookdale Senior Living Friday when he wrote that the company could separate its property holdings and nursing home businesses and place the former into a real estate investment trust. (Apparently, it's what all the cool local kids are doing these days.) If it happens, look for Fortress Investment Group, which owns 14 percent of Brookdale and has two board seats, to drive the train. Fortress has been doing the same at Penn National Gaming.
“To the extent that Fortress played a big role behind the scenes to effect [the Penn deal], it could potentially have implications for [Brookdale],” Lehrich wrote.
SEE ALSO: Details on two other recent instances when market chatter lifted Brookdale shares
Shares of National Health Investors were among those taking collateral damage Tuesday from a Jefferies & Co. downgrade of several health care real estate investment trusts because of Medicare reimbursement concerns. Jefferies analyst Omotayo Okusanya said the upcoming negotiations to resolve the fiscal cliff are likely to have a negative impact on Medicare. Owners of long-term acute-care and inpatient rehab centers could see clients flow to traditional nursing homes, he said.
After losing about 1 percent Tuesday, NHI shares (Ticker: NHI) are holding their own in early trading today around $52.95. Year to date, they're up about 20 percent.
Workers have broken ground on a $9 million project that will expand part of the five-year-old Heritage at Brentwood retirement community off Concord Road. The plan is for the development's Somerfield Health Center to grow to 66 beds from 30 and be divided into a number of areas focused on specific conditions.
In addition to memory care, the other four neighborhoods will encompass primarily private rooms and suites and allow for varying levels of care, in line with the company’s Centered Around Resident-Empowered Services (CARES) program to meet residents’ diverse health care needs. Each neighborhood will be equipped with a dining room, kitchen and activity room.
From left: John Stone, owner in The Heritage; Joe Reagan, former Brentwood mayor and Heritage resident; Lucille Nabors, chair of the Residents Council at The Heritage; Dahlen Jordan, administrator of The Heritage; Jon Tagatz, executive director of The Heritage; Brentwood Mayor Paul Webb; John Cooper, owner in The Heritage
Shares of Brookdale Senior Living are up about 6 percent in Wednesday trading on the back of Deutsche analysts initiating coverage of the nursing home chain and a number of its peers with 'buy' ratings. The researchers call Brentwood-based Brookdale a "must-own" and say the industry as a whole has a lot of good things going for it. They also launched coverage of Capital Senior Living, Emeritus and Five Star Quality Care with 'buy' ratings.
At almost 2 p.m., Brookdale (Ticker: BKD) was changing hands right at $25. (Deutsche sees it going to $33.) If it hangs on at that level, it would be its highest close since early July 2011.
SEE ALSO: A deeper look at why investors are enamored with nursing home operators
Shares of Brookdale Senior Living jumped 6 percent Thursday after a piece by Bloomberg took a closer look at the low valuations of the Brentwood-based operator and a number of its peers. The consensus is that health care real estate investment trusts are on the prowl for buyout targets as nursing homes benefit from demographics and rising property values.
SEE ALSO: Brookdale pops on competitor's acquisition from last month