A Brookdale Senior Living facility. Photo by Brookdale.
STAMFORD, CT–Land & Buildings is stepping up the pressure for Brookdale Senior Living to monetize its real estate holdings. In a letter sent to shareholders it urges the company to put up for sale portfolios worth $500 million to $1 billion and then reload as the transactions complete. All together it estimates that Brookdale's real estate is worth $7 billion to $8 billion.
It also would like to see Brookdale simultaneously pursue a senior housing REIT for its real estate, as “comparable companies trade at multiples in the mid-teens compared to mid-single digit multiple for Brookdale today,” according to the letter, penned by Jonathan Litt, founder and chief investment officer of Land & Buildings.
“Senior housing property transaction volumes and valuations in 2017 and 2018 provide credence to the foregoing portfolio sale strategy,” it also said.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
