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
Shares of Brookdale Senior Living popped more than 7 percent in early Wednesday trading after Health Care REIT said it would spend about $850 million to buy Sunrise Senior Living. The stock (Ticker: BKD) retreated a bit before surging some more. At about noon, shares were changing hands well above $21 for the first time since July of last year. They concluded the day at $22.08. Smaller competitors Advocat (Ticker: AVCA) and National HealthCare (Ticker: NHC) ended the trading session up about 5 percent and down about 2 percent, respectively.
National HealthCare Corp. said it will invest almost $11 million to build a 90-bed skilled nursing and rehabilitation facility in Tullahoma. The complex, which will employ about 100 people when full, is set to open its doors around this time next year.
National Health Investors has paid $25.2 million for a 138-unit senior living community in Silverdale, Wash., and lent another $3.5 million to Sante' Partners, the Oregon-based tenant of the facilities. NHI’s acquisition won’t be final until later this week. The deal was funded by the Murfreesboro-based company’s existing loan agreements and is subject to state licensing acceptance before ownership changes hands.
“This very attractive acquisition contributes to NHI’s goal of diversifying our portfolio. We are delighted to expand our relationship with Sante’ Partners,” Justin Hutchens, NHI president and CEO, said in a release.
The investment group seeking to take over Advocat is pressing the nursing home chain's investors to get in touch with their directors and executives about the recently announced buyout of Sun Healthcare by privately held Genesis HealthCare. Covington Health Group says its bid for Advocat is even better than the Sun Healthcare deal.
- BRASWELL, ROBERT
- GARRETT, JOHNNY C EXECUTOR; GARRETT, JOHNNY C IV EXECUTOR; GARRETT, ANN BIGGER ESTATE; GARRETT, TIMOTHY M EXECUTOR
- GARRETT, TIMOTHY M EXECUTOR; GARRETT, ANN BIGGER ESTATE; GARRETT, JOHNNY C EXECUTOR; GARRETT, JOHNNY C IV EXECUTOR
- GARRETT, JOHNNY C IV EXECUTOR; GARRETT, JOHNNY C EXECUTOR; GARRETT, ANN BIGGER ESTATE; GARRETT, TIMOTHY M EXECUTOR