NIC Notes

Insights in Seniors Housing & Care

Economic Trends  |  Ideas and Discussion

Smart Capital is the Best Capital: Meet Your Next Capital Provider

By: NIC  |  December 09, 2015

Today’s capital market conditions are favorable: capital is relatively inexpensive and readily available. Looking ahead, what will happen if and when the capital markets change? A change in policy by the Federal Reserve has the potential to cause a sea of change for both lenders and borrowers as the cost of capital increases. Higher interest rates will change the economics of a transaction and may cause some investors and lenders to reconsider deals and opportunities.

Economic Trends

At 211,000, November’s Job Gains Are Strong

By: Beth Burnham Mace  |  December 04, 2015

The first Friday of the month at 8:30 EDT is widely anticipated by market participants as the Labor Department presents a fresh gauge of the most recent economic performance in its release of the labor report for the prior month.  Today’s number was even more closely watched since it will be the most up to date information on the labor market that the Federal Reserve has prior to its FOMC meetings on December 15th and 16th.  At these meetings, the Fed will assess the state of the economy and determine whether or not it should raise its benchmark interest rate which has been near zero since the depths of the recession in late 2008. 

Economic Trends

Seniors Housing Returns Outpace NPI

By: Beth Burnham 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.

Economic Trends  |  Ideas and Discussion

Isolation, Segregation, Integration - The 10 Year Journey

By: NIC  |  November 25, 2015

The shift in ideals surrounding how Boomers wish to spend their golden years is drastically different from the ideals of their parents. To start Boomers reject the term “senior” they fear embracing this societal coined term for aging is a direct correlation to the loss of their independence. Boomers want to remain independent to make their own decisions, to live in a cross generational authentic community where their contributions are valued.  In stark contrast, the previous generation is seemingly content living comfortably in a community with others in their age cohort, where meals and daily activities are pre-planned.