Economy: Senior Housing Returns Beat Most Property Types

Third-quarter 2017 investment returns for NCREIF-reported senior housing assets bested all property types, except for one, according to the National Investment Center for Seniors Housing & Care.

senior livingThird-quarter 2017 investment returns for NCREIF-reported senior housing properties came in at 2.73 percent, representing 1.38 percent in capital returns and 1.36 percent in income returns, The National Investment Center for Seniors Housing & Care (NIC) reported recently.

The annual total return through the first quarter of 2017 was 12.72 percent, which far outdid the NCREIF Property Index return of 6.89 percent for the same period, as well as return for apartments, which was 6.22 percent. On the other hand, industrial total returns slightly outpaced seniors housing, coming in at 12.8 percent.

These measurements reflect the returns of 102 senior housing stabilized properties, valued at about $4.9 billion. This is the first time that the NCREIF universe of seniors housing exceeded 100 properties.

Previously, NIC reported that the occupancy rates for independent living properties and assisted living properties averaged 90.5 percent and 86.6 percent, respectively, during the third quarter of 2017.

The occupancy rate for independent living was down 0.1 percentage points from the prior quarter and down 0.6 percentage points from year-earlier levels. The occupancy rate for assisted living was up 0.2 percentage points from the second quarter, but down 1.2 percentage points from year-earlier levels.

Image via Flickr user Senior Guidance