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.
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.
Providing an insider’s view of politics as crucial primary elections approach, two members of the U.S. House of Representatives with experience in the seniors housing and care industry, and political commentator and author David Gergen, addressed the 25th NIC National Conference.