NEW CANAAN, CT – July 15, 2024 – The number of publicly announced seniors housing and care acquisitions in the second quarter of 2024 reached a new quarterly record of 183 deals, based on new acquisition data from LevinPro LTC. This represents a 21% increase from the 151 transactions disclosed in the first quarter of 2024, and a 49% increase from the 123 deals in Q2:23. Additionally, the $2.2 billion spent on Q2:24 transactions rose by 16.4% from the $1.89 billion spent on Q1:24 transactions and increased by 49.7% from the $1.47 billion spent in the year-ago second quarter, based on disclosed prices.
“Dealmaking has hit a remarkable pace so far this year, despite a difficult capital markets environment and persistently low valuations for most seniors housing assets,” stated Ben Swett, Managing Editor of The SeniorCare Investor. “A belief that the capital markets environment will not improve substantially anytime soon has convinced many property owners to sell now, rather than later.”
When annualized, Q2:24’s M&A activity would set a new yearly record of 732 transactions, surpassing the previous high of 559 transactions set in 2022 by about 30%. Moreover, it would exceed the 509 publicly announced deals recorded in 2023. To read more on this, check out “H1 M&A Exceeds 330 Transactions” in July’s issue of The SeniorCare Investor, a copy of which can be found here.
Assisted living deals made up the plurality of Q2:24 deals, accounting for 45%, followed by skilled nursing at 35%. Independent living deals comprised approximately 11% of the quarter’s total, affordable senior apartments took a 5% share and CCRCs and active adult deals accounted for 3% and 1%, respectively. Also, there were 485 properties involved in Q2:24’s deals for a property-per-deal ratio of 2.7, which is higher than Q1:24’s property-per-deal ratio of 2.2.
“Interest in skilled nursing facilities remains strong among investors, and valuations are still above pre-pandemic averages,” added Swett. “Following the Supreme Court’s recent decision overruling the Chevron doctrine, the future of a minimum staffing mandate looks bleak, as well, which is another benefit to investors.”
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 will be 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.
