Financial & Investment Overview

Financial & Investment Overview


Seniors housing has increasingly been drawing the attention of investors for many reasons.  Among them are the sector’s strong investment performance returns.  A measure of this performance return is evident by investment managers who own or manage seniors housing properties in a fiduciary setting.  This return performance is tracked and captured by data submissions from these investment managers to the National Council of Real Estate Investment Fiduciaries (NCREIF).

Strong income and appreciation returns continued for the seniors housing sector in the first quarter of 2015. Total returns were 4.66%, comprised of a 2.37% capital return and a 1.53% income return. On a one-year basis, total returns were an impressive 18.10% and outperformed both the NCREIF Property Index (NPI), which had a 12.72% return, and the apartment index with a 10.98% return. 

Total Returns

Total NPI Total Apartment Total Stabilized Senior Housing
1st Qtr 2015 3.57 2.85 4.66
4th Qtr 2014 3.04 2.77 4.11
One Year 12.72 10.98 18.10
Three Years 11.47 10.67 15.79
Five Years 12.75 13.62 14.26
Ten Years 8.39 8.05 14.19

Income Returns

Total NPI Total Apartment Total Stabilized Senior Housing
1st Qtr 2015 1.24 1.18 1.53
4th Qtr 2014 1.29 1.19 1.74
One Year 5.30 4.90 6.88
Three Years 5.54 5.11 6.75
Five Years 5.85 5.32 7.01
Ten Years 5.90 5.22 7.17

Appreciation Returns

Total NPI Total Apartment Total Stabilized Senior Housing
1st Qtr 2015 2.33 1.66 2.37
4th Qtr 2014 1.75 1.58 2.37
One Year 7.14 5.87 10.68
Three Years 5.70 5.35 8.61
Five Years 6.62 7.99 6.89
Ten Years 2.38 2.73 6.67
Source:  NCREIF, NIC Research & Analytics

*These performance measurements reflect the returns of seven managers, who reported $2.8 billion of seniors housing performance data on stabilized properties to NCREIF in the first quarter of 2015 and represent the institutional investment community’s historical experience. They do not indicate future performance results.