As we embark on the 25th National Conference, we realize how much the seniors housing and care sector has changed in terms of capital flow, market trends, operator sophistication to product evolution and investor interest. The industry is changing at an expeditious rate, so imagine what is to come in the next 25 including 2026 when the first Boomers turn 80 and beyond.
National Investment Center for Seniors Housing and Care and National Real Estate Investor are collaborating to create the second annual survey on the outlook for the seniors housing property market in terms of both its market fundamentals as well as its capital market trends. The survey will include the views of owners, builders, developers, lenders and investors in the seniors housing and care sector.
In light of REIT Week, NIC wanted to share valuable insight into the impact of health care REITs related to seniors housing and care. Health care REITs own and operate properties including senior housing and skilled nursing properties, hospitals and other medical office buildings. Low interest rates, attrative financing, solid returns and robust demand are all factors that indicate that health care REITs will continue to pursue seniors housing and care assets.
1 Institutional investment interest in seniors housing and care is strong and growing. In the first quarter of 2015, transaction volume totaled $19.4 billion on a four-quarter moving average, with more than 122 deals closing. Investor interest can be traced to many factors. Foremost among these factors is its investment track record: both appreciation and income returns for seniors housing have consistently dwarfed other property type returns for more than ten years. On a ten-year basis, total returns as reported by NCREIF were more than 14.1%; this compares with all property types of 8.4%.