Lenders Came Back. New Investors Explored the Seniors Housing Space
The 22nd NIC National Conference held at the Sheraton Chicago Hotel & Towers, September 19-21, attracted more than 20 percent first time attendees to a NIC event, including many capital providers new to the sector.
As evidenced by the energy generated during networking events, educational sessions, meetings or even waiting for the elevators, attendees were eager to discuss and share their insights and talk business. The mood at the conference was upbeat with attendees focused on the industry’s market fundamentals, comparative performance and the opportunities for growth.
NIC: As a first time attendee to the NIC National Conference, what was your overall impression of the conference? How would you compare it to the other conferences you and your staff attend?
Kinney: One of the most striking impressions or takeaways was our sense of the high level of professionalism and commitment to the industry that was demonstrated by all attendees. We observed and felt a strong, shared commitment amongst all attendees to the collective success of the industry. This was evident in the wide-spread information-sharing, mentoring and deal-making that we observed. We quickly realized that we need to return next year.
NIC: What aspects of the conference did you find most valuable?
Kinney: Given that Ginnie Mae sits between the lenders and investors, we found that networking and meeting industry participants was most valuable. Three of Ginnie Mae’s issuers were platinum sponsors; while 13 others were also sponsoring firms. This represents 25 percent of Ginnie Mae’s multifamily healthcare client base. Additionally, the conference afforded us the opportunity to meet with top executives of the large companies comprised of operators, REITs and investment firms. This is an incredible access to the industry leaders.
NIC: As your organization guarantees more than $20 billion worth of mortgage-backed securities comprised of FHA loans within the seniors housing and care sector, were the sessions relevant and valuable to you?
Kinney: The conference agenda was rich with learnings for us newcomers. Robert Shiller’s remarks were especially relevant, and the long run demographic and economic trends show us just how critical of a business line this is for Americans and Ginnie Mae. Listening in at Friday morning’s session,”Debt Financing: What’s Changed and What to Expect Going Forward” with representatives from FHA, Fannie Mae and Freddie Mae, has given us ideas on how Ginnie Mae might better serve this market.
NIC: What are your key takeaways from the conference?
Kinney: For the three of us, the up-close and personal exposure to key players in this market and the aggregate information that we received from so many stakeholders are invaluable. Often we are asked to explain our program to investors, policy makers, members of Congress, and others. The NIC National Conference put us directly in touch with the seniors housing and health care industry, which will position us to speak more confidently to investors and lawmakers about the importance of our securitization programs in this sector.
|The general sessions, special CEO panel and breakout sessions were all well attended. Yale Professor Robert Shiller, co-author of the Case Shiller Home Price Index, gave a cautious assessment of the residential housing market during the Opening General Session. He pointed out that this is the fourth time we have had a “mini” recovery during the recession, with no compelling evidence that we are in recovery versus seasonality. Professor Shiller said we need to look at year over year performance, not quarter over quarter, and that he would want to see a year of recovery, which we have yet to see.|
|Former CMS Director Tom Scully offered attendees his Washington insider perspective on what the results of the national election could mean, not only for healthcare, but specifically for post-acute and LTC. Talking about Medicare and Medicaid, he mentioned that there are no quick fixes surrounding Medicaid and that nursing home providers need to focus more on educating Capitol Hill on the inadequacies of Medicaid.|
At the Special General Session moderated by Raymond Braun, Dean of the College of Business Administration, Bowling Green State University, CEOs (George Hager– Genesis Healthcare LLC, Larry Cohen – Capital Senior Living Corporation, William Pettit – Merrill Gardens and Bill Sheriff – Brookdale Senior Living) discussed a range of issues, including strategic plans to increase enterprise value, acuity levels, operational plans employed in terms of quality enhancements, and how different capital structures impact value creation.
Attendance was high at the dozen breakout sessions. Topics ranged from private equity deployment strategies; the changing face of skilled nursing; to financing options for development and redevelopment and the effects of the growing role of managed care in Medicaid and Medicare for SNFs.
Two of the most highly attended breakout sessions were “The Case for Seniors Housing Investments” and “Seniors Housing Market Trends & Outlook.” Panelists on “The Case for Seniors Housing Investments” session outlined both opportunities and challenges of investing in seniors housing, and the “Seniors Housing Market Trends & Outlook” session provided a detailed review of the sector highlighting the differing dynamics across metro markets and identifying which markets are best positioned for growth.
Audio recordings of breakout sessions are available for purchase. Click here to view the full list of available session recordings. Conference attendees can access the session PowerPoint presentations in PDF format. To access these presentations simply log in to your account on www.nic.org and go to the schedule page and click on the session link.
Robert Kramer, NIC’s President gave an overview of the industry’s performance at the press briefing held on Thursday morning. David Schless, president of the American Seniors Housing Association (ASHA), joined him, as well as Mike Hargrave, NIC’s Vice President – NIC MAP and Chuck Harry, NIC’s Director of Research and Analysis.
- David Schless discussed key findings in the Seniors Housing Construction Trends Report
- Mike Hargrave outlined the enhancements to the recently upgraded MAP Data Service – MAP Local V2. The enhanced search and reporting functionalities provide more in-depth property and industry data to help assess market opportunities and improve business performance; and
- Chuck Harry discussed the release of the NIC Investment Guide: Investing in Seniors Housing & Care Properties, Second Edition. The Investment Guide is a primer for understanding the seniors housing and care property sector, helping investors evaluate opportunities and risks, as well as formulate their individual investment strategies. The Executive Summary of the Investment Guide is available for download here
The award for the 2012 Seniors Housing & Care Journal’s Best Research Paper sponsored by Prudential Real Estate Investors, was presented to Linda Hollinger-Smith, Kathryn Brod, Susan Brecht, and Mary Leary for their paper, “Adult Children of CCRC Residents: Their Perceptions, Insights, and Implications for Shaping the Future CCRC.”Read more. The Journal is available free of charge for download and print, or link to the full texts of the articles without asking prior permission from the publisher or the author. Click here to read the Executive Summaries from the Journal or to download the full articles.
NIC staff assisted the steady stream of attendeess to the data center, seeking to purchase research publications and inquiring about the NIC MAP data service. Attendees also had the opportunity to test the MAP Local V2 database, conducting searches and comparing competitive sets within primary market areas.
- More than 50 percent of the attendees were senior-level decision makers
- 40% were capital providers (debt and equity)
- 45% were operators of seniors housing and skilled nursing properties
- 10% were transaction service providers (attorneys, feasibility consultants)
What they said
- 78 percent expect to do a deal because of a contact/conversation made/had at the conference (survey results so far)
- The NIC conference matches those with $$ to lend with those looking for $$, not to mention it is a great venue to build relationships over a long period
- It is the one event that is a must for capital formation in seniors housing
- The conference provides a very good opportunity to develop your knowledge of senior living as an asset class for investment and meet other professionals working in the industry
- The conference is an efficient way to make industry connections and to learn about key events shaping the future of the industry
- Brings all the players together in one place and provides data we all need to know to be successful