has biten off more than it can chew. BKD could have a hard time servicing its debt should this economy soften. There "dividends" are also bogus. As far as I know, a company can't pay dividends if it has no retained earnings.
I agree. In analyzing the financial structure of the company, gross-up the operating lease payments by a multiple of say 7x to 9x and add as a liability to the balance sheet. I think you'd find this company is highly levered and susceptible to pain if operations don't hum. Also, look at where their assets are concentrated. Few are located in the more attractive metro areas, where there's depth in demand for elderly housing.
I believe this stock may be still on its honeymoon. Focus on future same store increases and occupancy gains. If they don't materialize, maybe this company's true niche is in financial engineering and not as an operator of elderly housing. These views are all just my opinion.