Insider Newsletter

February 15th 2024

2024 Presents a Golden Opportunity to Increase Occupancy Amid Favorable Market Dynamics

Amid favorable supply and demand market dynamics, 2024 presents a golden opportunity for senior housing communities to bolster occupancy rates and drive operational growth, thereby mitigating some of the challenges posed by capital market conditions.

NIC Analytics recently published its first occupancy stratification report. The outlook for 2024 suggests a notable improvement in the overall stabilized occupancy distribution. By the end of 2024, the stabilized occupancy rate for senior housing communities in the 99 NIC MAP Primary and Secondary Markets is expected to reach approximately 90% on average. See the analysis here.

The Medicare Advantage Landscape: Plan Consolidation and Proposed Rate Cuts Impact Providers

In 2023, Medicare Advantage (MA) enrollment surpassed traditional fee-for-service Medicare enrollment for the first time in the program’s history, with more than 30 million seniors—51% of the Medicare population—now enrolled in a private plan. While MA plans can boast lower 30-day hospital readmission rates and fewer avoidable hospitalizations for their members, the increasing penetration of MA plans, plan consolidation, and further proposed rate cuts is a trend that will impact senior housing and care providers. Providers should monitor MA trends and explore where to participate in value-based care arrangements to better position for long-term success and viability. Read more here.

3Q 2023 Lending Trends in Senior Housing and Nursing Care Reflect Adjustments to New Economic Realities

Escalating loan expenses due to higher interest rates are impacting senior housing properties, creating challenges for many and distress in certain others, according to the just released 3Q 2023 NIC Lending Trends report. The sector anticipates billions of dollars maturing this year. While some may endure the repercussions of high interest rates, stability is anticipated in 2025 for those that can weather the current conditions, with an expected improvement in capital market conditions, occupancy, and NOI outlook. Highlights from the report, including responses “from the field” on today’s economic realities in the face of shifting market conditions, are available here.

Diverse Senior Housing Investment Opportunities Across the Risk Spectrum

Senior housing investors have a growing pool of opportunities that span the risk spectrum, from core to opportunistic, at dislocated pricing, set against the backdrop of one of the most compelling fundamental stories in the real estate sector. Click here to learn more about the current landscape and what is likely to unfold throughout 2024.

Industry Legacies: Parents Pass the Baton to the Next Generation

Parent/child duos working across the senior housing and care industry aren’t unusual. This conversation with Lynne Katzmann of Juniper Communities and her son, Andrew Katzmann with Columbia Pacific, offers insights into what is motivating the next generation to follow their parents into careers in the senior living sector and what they are learning from each other. Read the Katzmanns’ story here.

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