Slowly but surely, the performance of seniors housing assets is improving. While rent growth in 2022 in the sector represented a period of catch-up after the pandemic stymied the ability of operators to raise lease rates, continuing rent increases in 2023 began contributing to more meaningful net operating income recovery, according to Walker & Dunlop’s recently released Seniors Housing Outlook report. Now, seniors housing owners are positioned for a sustained period of significant revenue expansion amid improving occupancy and a shortfall of new inventory, reports the Bethesda, Maryland-based commercial real …
Content Partners
De-Risking Elevator Emergencies: Why Senior Living Facilities Need Modern Elevator Communication Solutions
Any property owner knows the headaches that arise when an elevator malfunctions. In senior living facilities, such problems have the potential to escalate into a crisis very quickly. Emergency communications in senior care facilities are vitally important, not only to protect the health and safety of residents and visitors but also to minimize disruptions to staffing resources. If there is an emergency, that call has to go somewhere. In senior living facilities, that destination is often the nursing station. “We consistently hear about nursing shortages, with staff being pulled in …
New Technology, Electronic Health Records Solve Problems in Post-Acute Care
Changing Medicare requirements for risk-based programs are putting new pressure on seniors housing operators and skilled nursing facilities that provide post-acute care (PAC) to people recently released from hospitals. Standards for the quality of care are becoming stricter just as innovations in record keeping, data analysis, voice recognition technology and smart room sensors are maturing. These new technologies — including many powered by artificial intelligence (AI) — combined with electronic health records (EHRs) can help operators adapt to the enormous changes coming to the seniors housing business. “We really put …
Evolution of Customer Needs, User Behavior Drive Future of Electronic Health Records
Consumer expectations of technology are evolving due to a generational shift. Today’s senior living and long-term care residents and their family members are becoming increasingly tech-savvy. Their adeptness with digital solutions continues to grow with new technology. Residents and their families’ use of these tools is expanding rapidly to include staying updated on health and activities, tracking medication, managing important documentation and overseeing finances. Electronic health records (EHRs) can assist in centralizing this information and can conform to the latest customer needs. Residents and their loved ones expect easy access …
Seniors housing acquisition and development is a costly business these days. Inflation has increased the price of construction materials, and wage pressures are driving up personnel costs. And after nearly two years of interest rate hikes to slow inflation, debt service on short-term construction and bridge loans is straining borrowers’ budgets and potentially threatening their ability to qualify for take-out financing when their properties reach stabilization. That is, if they can even source a long-term mortgage from increasingly risk-averse regional banks distracted by today’s market volatility, says Jason …
What’s to Come: An Optimistic Outlook for Seniors Housing
By Berkadia Seniors Housing & Healthcare Like many sectors within the commercial real estate (CRE) industry, the seniors housing market faced headwinds over the past year, largely due to tightening financing conditions and widespread economic uncertainty. However, based upon research and anecdotal evidence from the clients and companies we serve in the seniors housing space, we believe the sector is well positioned to bounce back and generate positive operating results for the remainder of 2023 and into 2024. View a higher resolution version of the construction trends graph above here. Fundamentals …
Call it the ripple effect. A great clinical team produces positive resident outcomes. Positive outcomes lead to satisfied residents and families, which leads to a good reputation in the wider community. That leads to more referrals, higher occupancies and organizational success. “Clinical outcomes are at the forefront of everything we do,” says Rob Moore, director of strategy and portfolio management at MatrixCare, a provider of senior living software solutions. “It is critical to maintain focus on outcomes.” The best way to ensure good resident outcomes? Give the clinical team a …
It has been more than three years since COVID-19 lockdowns wreaked havoc on skilled nursing, assisted living and memory care facilities. Among other consequences, falling admissions and occupancies required many operators to seek or extend short-term loans to survive until brighter days. The good news is that, to a certain extent, those days have arrived: Rebounding occupancies are inching closer to pre-pandemic levels, higher Medicaid reimbursements are flowing to net operating income, and labor costs are stabilizing, says Michael Gehl, chief investment officer for FHA lending for NewPoint Real Estate …
BALTIMORE — M&T Realty Capital Corp., a Baltimore-based subsidiary of M&T Bank has closed a total of $434.7 million in loans during the first six months of 2023. The loans are for senior living properties, health and rehabilitation centers and retirement communities in the South, Southwest and Northwest. M&T financed 18 properties in eight states across the entire acuity spectrum from standalone independent living to skilled nursing. Loans and amounts include the following: The M&T seniors housing team includes Matt Pipitone, Nick Gent and Matt Henning. Details on the properties …
Owners and operators considering an exit strategy today face a challenging economic environment. Higher interest rates have slammed capital markets. Valuations are in flux. Transactions have slowed. And the pool of potential buyers has dwindled. As an alternative to an outright sale to a third-party, an often-overlooked option is an exit to an employee stock ownership plan (ESOP). These plans allow business owners to sell all or part of the company’s stock to employees, allowing owners to diversify wealth away from the business while limiting their future liability. Ultimately, …