Senior Housing and Care M&A Activity Hits Record Highs in 2022

The number of publicly announced seniors housing and care acquisitions in 2022 rose to 527 deals, based on new acquisition data from LevinPro LTC. This represents a 17 percent increase from the 450 transactions disclosed in 2021. However, the $14.02 billion spent on 2022 transactions fell by 27 percent from the $19.32 billion spent on 2021 transactions, based on disclosed prices. 

The fourth quarter of 2022 ended with 106 transactions, down from 136 in the third quarter of 2022 and from 141 in the fourth quarter of 2021. That represents the lowest quarterly deal total since the first quarter of 2021, when 85 deals were publicly announced, and shows the impact of high-interest rates on the M&A market.  

There were just under 2,000 properties involved in the 450 transactions of 2021 for a property-per-deal ratio of 4.4, versus just under 1,700 transactions across the 527 deals of 2022 for a property-per-deal ratio of 3.2.  Skilled nursing deals represented just 41 percent of the year’s transactions, with the seniors housing sectors of active adult, independent living, assisted living, memory care, CCRCs and affordable age-restricted housing making up the other 59 percent. The sector accounted for 53 percent of the properties sold in 2022, compared with 47 percent for the seniors housing sectors combined. In the last four months of the year, the proportion of skilled nursing facilities deals rose to 45 percent and properties sold rose to 67 percent.