Seniors Housing

Fundamentals continue to improve, but rising costs, inflation and interest rate hikes are tempering enthusiasm even as seniors housing continues to bounce back from COVID-induced disruptions.

Exclusive research shows that investors expect rising interest rates and other pressures to push cap rates up over the next 12 months.

Occupancy rates are still recovering and costs remain a concern, but the long-term outlook for the sector remains positive.

Although some pressures remain, with vacancy rates starting to fall and other fundamentals stabilizing, seniors housing developers are looking to push new projects forward.

Deutsche Bank analyst Derek Johnston wrote in a note this week that the treatment, along with shorter isolation guidelines, could help the seniors housing sector.

Many active adult communities, which serve relatively young seniors, performed very well during the pandemic.

The REIT, which operates skilled nursing facilities and seniors housing is working with an adviser to solicit interest from potential suitors.