Capitalization Rates
Quarter Ending 3/31/08
From transactions involving major appraisal firms specializing in the industry:
Capitalization rates are defined as: forecast earnings (or NOI or EBITDA) divided by market valuation of (or price paid for) the enterprise.
Mean Capitalization rates are weighted by the number of property transactions involved. Low and high values represent a range of reported values. Though appraisers are requested to submit capitalization rates only for transactions that have closed during the quarter, this quarter's data may include some transactions proposed but not yet closed, or from refinancing valuations.
Quarter Ending 3/31/08
From transactions involving major appraisal firms specializing in the industry:
| Property Type | Low (%) |
Average (Mean) (%) |
High (%) |
Number of Property Transactions Involved |
| Independent Living | 5.8 | 7.6 | 9.2 | 12 |
| Assisted Living | 7.1 | 8.8 | 11.3 | 41 |
| Nursing Homes | 11.1 | 12.8 | 14 | 40 |
| CCRCs | 8.5 | 10.1 | 11.7 | 4 |
Capitalization rates are defined as: forecast earnings (or NOI or EBITDA) divided by market valuation of (or price paid for) the enterprise.
Mean Capitalization rates are weighted by the number of property transactions involved. Low and high values represent a range of reported values. Though appraisers are requested to submit capitalization rates only for transactions that have closed during the quarter, this quarter's data may include some transactions proposed but not yet closed, or from refinancing valuations.