NEW YORK CITY and MURFREESBORO, Tenn. — Two of the larger REITs in seniors housing, New York-based New Senior Investment Group and Murfreesboro-based National Health Investors, released first-quarter reports showing continued profitability despite the ongoing struggles due to the COVID-19 pandemic.
New Senior reported 141 positive coronavirus cases in its communities — 101 residents and 40 workers — across 16 communities. With 10,800 residents and 3,300 workers, that accounts for 1 percent of the company’s population.
One particularly large outbreak at a continuing care retirement community in Philadelphia accounts for over half of New Senior’s positive cases. The company decided late last year to sell off all its assisted living assets to focus on independent living.
“Based upon how quickly the pandemic has evolved over the past couple of months, it is difficult to predict the length or shape of the recovery at this point,” said Susan Givens, New Senior’s CEO. “We strongly believe that the value of senior housing, and independent living in particular, remains intact.”
Occupancy across New Senior’s portfolio fell from 88.7 percent at the end of February to 86.2 percent at the end of April due to move-ins slowing by 55 percent compared to January and February.
NHI reported a similar infection rate at its communities — 192 cases at 37 communities representing 1 percent of residents. Despite the pandemic, the company said it collected 99.7 percent of rents in April and 94 percent of rents in May.
The company, like all the other REITs, is reporting depressed occupancy due to a decrease in new residents.
“As our operators have implemented their protocols and taken appropriate actions to prevent or limit the spread of the virus, the result has been a significant downturn in inquiries, tours and move-ins,” said Eric Mendelsohn, president and CEO. “This is having a negative impact on occupancy.”