SNF bed prices are still soaring
Big-dollar deals in the seniors housing sector continue to drive up per-bed prices, according to the latest figures from Irving Levin Associates Inc.
The average price for skilled nursing units rose to $78,400 as of the quarter ending Sept. 30. That's up 7% from $73,300 a year earlier.
“Buyers are … purchasing those skilled nursing facilities with the most potential to increase their subacute census and drive managed care business,” stated Levin Associates' Stephen M. Monroe.
Five SNF acquisitions were priced at more than $100,000 per bed in 2012, but there were 11 such deals in the first three quarters of this year.
The per-unit price increase for assisted living properties was an even more dramatic 30.5% (up to $196,600).
Capitalization rates also have been decreasing for every senior living segment, the Levin report noted.
The quarterly update is a supplement to Irving Levin's 2014 Senior Care Acquisition Report, which said 225 deals occurred in 2013, making it a record year for merger and acqusition activity.