Positive Momentum of Seniors Housing & Care Sector Sparks Investors to Strategize
Wall Street Journal reports: In response to the rising fortunes of the seniors housing & care market in the US, one of the largest owners of such properties in North America has announced its intentions to cash out on as much as 40% of its holdings. The Wall Street Journal recently reported that Canada-based “Chartwell Seniors Housing Real Estate Investment Trust, which owns or partially owns 23,826 units in Canada and the U.S., estimates that the U.S. property sales could fetch as much as US$500 million.”
Chartwell’s move comes as investors find the seniors housing & care sector on a clear, upward trajectory in terms of fundamentals and valuation. The Journal cited a recent report by the National Investment Center for the Seniors Housing & Care Industry (NIC), based on data aggregated by Real Capital Analytics (RCA), which described this trajectory, which stated that occupancy in the sector – at 88% in the first quarter of 2011 – is approaching its former high of 92% posted in 2006. Investors expect occupancy to continue rising in the next decade.
Download RCA’s recent presentation to the National Investment Center for the Seniors Housing & Care Industry, featuring data aggregated by RCA on seniors housing & nursing care property transactions.
The Journal also cited that sales volume of seniors housing & care properties tallied $16.7 billion in the first half of 2011, and RCA Founder and President Bob White added that, “The volume has just exploded…” since last year. With multiple large-scale portfolios trading and some significant M & A activity, the sector's momentum has prompted current seniors housing & care property owners to reevaluate their investment strategies, including Chartwell. The firm intends to dispose of large chunks of its portfolio to revitalize its core properties and expand in high-growth potential markets such as Florida, Texas and Colorado among others.
View the full article on Wall Street Journal: Positive Momentum of Seniors Housing & Care Sector Sparks Investors to Strategize
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Posted by: Nina Turner