Senior housing is no longer outperforming every other asset class when it comes to investment returns.
The annual total senior housing return through the first quarter of 2017 was 12.72%, which is slightly lower than the annual total industrial return of 12.80%, according to data analyzed by the National Investment Center for Seniors Housing & Care (NIC).
The total annual return for senior housing has been trending down since it peaked at 20.37% in the middle of 2014.
Senior housing investment returns did continue to eclipse the National Council of Real Estate Investment Fiduciaries (NCREIF) Property Index (NPI), however. The NPI outcome was 6.89%, according to NIC.
The NPI is a property-level index that tracks investment return performance for commercial real estate.
Third-quarter 2017 investment return data for NCREIF-reported senior housing properties, meanwhile, totaled 2.73%, comprising a 1.36% income return and a 1.38% capital return.
The performance measurements reflect the returns of 102 stabilized senior housing properties, which were valued at $4.9 billion in the first quarter of this year. The third quarter of 2017 represents the first-ever quarter that the number of senior housing properties in the NCREIF universe was greater than 100.
Written by Mary Kate Nelson
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