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Seniors Housing Investment Information
The Seniors Housing Capital Environment:
A Discussion with Bill Shine
In the latest in a series of dialogues with key players regarding the current capital environment in the seniors housing and care industry, Michael Hargrave, Vice President - NIC MAP, recently interviewed William E. (Bill) Shine, Senior Director, Synovus Financial Corporation.
Congratulations on your recent appointment to Synovus. Can you tell us about the bank including size, recent history, lending activities and footprint?
Mr. Shine: Synovus Financial Corp. is a financial services company with more than $30 billion in assets based in Columbus, Georgia. Synovus Bank is its wholly-owned subsidiary and provides retail and commercial customers both specialized and traditional products and services. Synovus Bank’s footprint is located throughout the Southeast, including Georgia, Alabama, South Carolina, Florida, Tennessee and North Carolina. Relationship banking has always been at the heart of our business approach, and our bankers remain empowered to make the local decisions that are best for their customers. Our key areas of focus for 2011 include returning to profitability and expanding customer relationships across our footprint. We are in one of the most desirable banking footprints in the U.S., and many of our bank divisions currently rank in the top five in market share in communities across our Southeastern footprint. We completed a $1.1 billion capital raise in 2010 that strengthened our balance sheet and provided a stronger foundation for long-term growth.
For the rest of the story:
http://www.nic.org/insider/stories/story1.aspx
NIC Research Insights
Will Residents Relocate from Afar to be Near Adult Children?
For years, market studies have often assumed that 20% of residents in independent living properties come from outside those properties' primary market areas. In 2003, Beverly Asper and Jennifer Schwalm1 published the first empirical evidence of moving distances by residents with an analysis of a large sample of residents who were moving into to CCRCs. That analysis provided evidence that 22.5% of those new residents were relocating to the CCRCs from a distance beyond 15 miles. Recently, NIC analyzed data from the ongoing survey of age 70 plus headed households from the Reuters/University of Michigan's national monthly Surveys of Consumers. This recent data show that 20.4% of the surveyed 70 plus households cited their existing homes as not convenient to where most of their respective family lives. Given the desire by many seniors to live in proximity to their adult children, this latest research further supports the earlier work by Asper and Schwalm which indicated that 20% of independent living residents can come from well outside of a property's primary market area. As with any such data, the dispersion around the mean can be large, and the experiences of individual properties can vary significantly.
The key takeaways from the recent Reuters/University of Michigan's national monthly Surveys of Consumers will be published in an article within the 2011 Seniors Housing & Care Journal, which will be distributed to attendees at the upcoming 21st Annual Conference. The Journal will also be available for purchase in the NIC Store beginning in October.
1 Asper, Beverly, and Jennifer Schwalm, CPA. "Determining Moving Distances to Continuing Care Retirement Communities: An Empirical Analysis." Seniors Housing & Care Journal 11.1 (2003): 55-61. Print.
| Date |
1 mo |
3 mo |
6 mo |
1 yr |
2 yr |
3 yr |
5 yr |
7 yr |
10 yr |
20 yr |
30 yr |
| 08/01/11 |
0.13 |
0.10 |
0.16 |
0.22 |
0.38 |
0.55 |
1.32 |
2.05 |
2.77 |
3.72 |
4.07 |
| 08/02/11 |
0.05 |
0.06 |
0.13 |
0.17 |
0.33 |
0.50 |
1.23 |
1.94 |
2.66 |
3.59 |
3.93 |
To get current figures:
http://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yield
Summary of comentary on Current Economic Conditions July 27, 2011
(based on data collected before July 15, 2011)
Reports from the twelve Federal Reserve Districts indicated that economic activity continued to grow; however, the pace has moderated in many Districts. The six Districts nearest the Atlantic seaboard reported a slowdown in activity since the previous Beige Book report; activity was little changed in the Atlanta District and unchanged or slightly improved in the Richmond District. Of the other six Districts, the Minneapolis District reported political and weather-related disruptions that temporarily slowed growth, and the Dallas District slowed to a moderate pace of growth. The remaining four Districts continued to grow modestly. The previous Beige Book reported a slower growth rate for four Districts, seven Districts growing at a steady pace, and one District with faster growth.
Consumer spending increased overall, with modest growth of nonauto retail sales in a majority of Districts. Falling gasoline prices throughout most of this reporting period may have encouraged a pickup in shopping trips and some additional spending since the previous Beige Book. Price pressures from food, energy, cotton, and other supplier inputs continued to squeeze retail margins. Auto sales slowed a little since the previous Beige Book, with inventories still lean due to Japanese supply chain disruptions. The summer tourism season has started off stronger than last year in most areas unaffected by severe weather.
Activity among nonfinancial service sectors improved overall in most Districts. Of the five Districts reporting on transportation services, volumes were mostly up. Manufacturing activity expanded overall, with two Districts growing at a somewhat faster rate since the last Beige Book, many Districts reporting steady or slowing growth, and two Districts reporting little change. Among firms reporting on near-term expectations, the manufacturing outlook remained generally optimistic, but capital spending plans were somewhat more cautious.
Most residential real estate activity was little changed and remained weak, although construction and activity in the residential rental market continued to improve since the previous Beige Book. For six Districts, activity in the nonresidential real estate market has improved slightly for specific submarkets, although conditions generally remained weak across all twelve Districts. Since the last Beige Book, overall loan volumes have increased in three Districts, decreased in two Districts, and were relatively flat, often with mixed trends across the banks’ portfolios, in five Districts. Credit quality was steady or improving.
Drought conditions and severe flooding adversely affected large portions of the seven Districts that reported on their agricultural sectors. Districts that reported on their energy and mining sectors continued to note strong growth for most energy-related products but some weakness in coal production.
Although most Federal Reserve Districts observed modest hiring increases, labor market conditions remained soft. Wage pressures continued to be subdued for all but a few specific occupations in some Districts. Price pressures moderated somewhat in many Districts, although some firms indicated that they were able to pass on some cost increases to their customers.
Overview of the Federal Reserve System
Monetary Policy and the Economy
Other publications:
http://www.federalreserve.gov/pf/pf.htm
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