By: Beth Mace | December 02, 2015
Returns Strong. Third-quarter return performance data for the NCREIF-reported seniors housing properties was strong. Total returns equaled 4.20%, composed of a 2.80% capital return and a 1.39% income return. On a one-year basis, total returns were an impressive 16.32%, overshadowing NPI’s strong results (13.48%) as well as those for apartments (12.02%). Income returns for seniors housing are consistently strong, reflecting steady and reliable NOI growth in the sector, while strong capital flows and avid investor interest support capital returns for the sector. On a 10-year basis, total returns for seniors housing exceeded both the NPI and apartments by roughly 550 basis points. These performance measurements reflect the returns of seven managers, who reported $3.2 billion of seniors housing performance data on stabilized properties to NCREIF in the third quarter.
By: Beth Mace | November 06, 2015
Today’s Labor Department employment report for the month of October was strong and possibly strong enough for the Federal Reserve to raise its benchmark interest rate at its upcoming December meetings. A rate hike had been expected by many analysts for much of 2015, but weakness in the labor markets, among other things, has kept the Fed on the sidelines.
By: Beth Mace | November 04, 2015
Beth Burnham Mace, Chief Economist, Director of Capital Markets Outreach
By: Beth Mace | September 16, 2015
Investor interest in the seniors housing and care sector is strong. Transactions are near peak levels in terms of both dollar volumes and the number of deals closing. Over the past four quarters, 554 deals closed, a near-record pace and equal to $23.4 billion of transactions. Strong demand is pressuring prices higher, with per-unit pricing averaging $173,000 for seniors housing and $73,000 for skilled nursing on a four-quarter moving average basis in the second quarter of 2015. Prices for seniors housing have never been so high.
