Seniors housing continues to produce higher annualized total returns than apartment, hotel, office and retail properties, according to the National Council of Real Estate Investment Fiduciaries. Annual total returns exceed the NCREIF Property Index as well.
National Investment Center for Seniors Housing & Care Chief Economist Beth Mace discussed the data Friday in a blog post.
The annual total return for seniors housing was 12.72% compared with 6.22% for apartments and 6.89% for the NPI, according to NCREIF. The differential between seniors housing and hotels was the largest, at 810 basis points.
The data include the returns of 102 seniors housing stabilized properties that were valued at a total of $4.9 billion in the first quarter, Mace noted.
On a one-year basis, only industrial properties, at 12.8%, had a higher annual total return than seniors housing. On a three-year, five-year and 10-year basis, however, seniors housing surpassed all property types, as well as the NPI, although Mace pointed out that the total annual return for seniors housing has been trending downward since the middle of 2014, when it peaked at 20.37%.
