NEW CANAAN, CT – October 7, 2024 – The number of publicly announced seniors housing and care acquisitions in the third quarter of 2024 reached 175 deals, based on new acquisition data from LevinPro LTC. This represents a 5.6% decrease from the 185 transactions disclosed in the second quarter of 2024, and a 34.9% increase from the 123 deals in Q3:23. Additionally, the $2.96 billion spent on Q3:24 transactions rose by 28.7% from the $2.3 billion spent on Q2:24 transactions and increased by 243.1% from the $861.6 million spent in the year-ago third quarter, based on disclosed prices.
“We are in the busiest M&A period on record for the seniors housing and care industry,” stated Ben Swett, Managing Editor of The SeniorCare Investor. “The Federal Reserve’s recent interest rate cut will only increase the number of buyers and lenders willing to do deals, and likely at higher prices.”
When annualized, Q3:24’s M&A activity would set a new annual record of 700 transactions, surpassing the previous high of 559 transactions set in 2022 by about 25%. Moreover, year-to-date, 2024’s deal total already exceeds the 511 publicly announced deals recorded in calendar-year 2023.
Assisted living deals made up the plurality of Q3:24 deals, accounting for 45%, followed by skilled nursing at 37%. Independent living deals comprised approximately 5% of the quarter’s total, affordable senior apartments took a 5% share and CCRCs and active adult deals each accounted for 4%. Also, there were 451 properties involved in Q3:24’s deals for a properties-per-deal ratio of 2.6, which is equal to Q2:24’s properties-per-deal ratio.
“With the interest rate cut and better operational environment, we have started to see cap rates compress for stabilized deals, more Class-A assets transact, and more portfolios up for sale,” added Swett. “These factors mark a change in the market, which previously mostly featured small, distressed deals at discounted prices.”
All long-term care M&A deals dating back to 1993 can be accessed on the LevinPro database and can be purchased via a site license. In addition, annual results of the seniors housing and care acquisition markets have been published this year in the 29th Edition of The Senior Care Acquisition Report. For information, or to subscribe, call 800-248-1668. Irving Levin Associates was established in 1948 and has offices in New Canaan, Connecticut, and North Bethesda, Maryland. The company publishes research reports and newsletters, and maintains databases on the healthcare and seniors housing M&A markets.
