Seniors Housing Business

AUG-SEP 2015

Seniors Housing Business is the magazine that helps you navigate the evolution of the seniors housing industry.

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66 Seniors Housing Business n August-September 2015 Susan n The SHB Interview CEO of New Senior Investment Group Givens REIT owner of independent, assisted living facilities delivers outsized NOI growth while assembling a high-quality portfolio. New Senior Investment Group Publicly traded REIT: NYSE: SNR Headquarters: New York City Founded: November 2014 (spun of from Newcastle Investment Corp.) Overview: New Senior focuses on acquiring independent living and assisted living assets; the company is externally managed by an afliate of Fortress Investment Group LLC, a global investment management frm Portfolio size: 152 properties with over 18,900 beds spread across 37 states Portfolio characteristics: 91 percent of NOI comes from private pay seniors housing; 70 percent of portfolio's net operating income (NOI) comes from independent living properties Notable: Year to date through June 30, New Senior has completed or announced $1.2 billion in acquisitions, which include 49 independent living properties, two assisted living/memory care facilities, and one rental continuing care retirement community Website: By Matt Valley and Jef Shaw It's been an extremely fast start out of the gate for New Senior Invest- ment Group, the publicly traded healthcare REIT (NYSE: SNR) spun off from Newcastle Invest- ment Corp. in November 2014. The New York City-based company has already completed or announced $1.2 billion in acquisitions this year, includ- ing the $640 million acquisition of a 28-community portfolio of private pay, independent living senior housing properties from affliates of Holiday Retirement. The purchase of the Holiday portfolio — 3,298 units spread across 21 states — was completed in August. In March, New Senior closed on the acquisition of 17 private pay, independent living senior housing properties from affliates of Hawthorn Retirement Group for approximately $435 million. The portfolio is 100 percent pri- vate pay and contains 2,082 units located across 10 states. While these mega deals have provided New Senior with high- quality assets that boast a track record of strong and consistent performance, that's only part of the story. The REIT also special- izes in smaller transactions, under $250 million, in which it acquires "undermanaged" prop- erties that offer signifcant upside potential. Leading the aggressive growth strategy at New Senior is CEO Susan Givens, who has over 15 years of private equity and fnance experience. Prior to becoming CEO of New Senior, Givens served as CFO and trea- surer at New Residential Invest- ment Corp., a publicly traded REIT that invests in mortgage servicing-related assets. Seniors Housing Business recently spoke with Givens about the niche New Senior is carving out for itself in the healthcare REIT space, the acquisitions cli- mate and deal volume, plus her unique academic background. Seniors Housing Business: New Senior Investment Group emphasizes to prospective inves- tors that it is the only pure play, publicly traded seniors housing REIT. What advantage does that gives the company in the marketplace? Susan Givens: Over the last three years, we've assembled one of the largest portfolios of inde- pendent living and assisted living properties in the U.S. It's now worth over $3 billion, and we think it's a very unique, hard-to- replicate portfolio. Fortress Investment Group LLC (NYSE: FIG), our manager, has a 15-year track record of investing in seniors housing with Brookdale Senior Living, Holiday Retirement and others. It's a space Fortress knows well, and Fortress has been one of the largest and most successful investors across the sector. Our target demographic — individuals age 70 and older — is

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