Assisted Living Investment Guide Assesses Risks and Returns

ANNAPOLIS, MD–Assisted living facilities providing the country’s graying population with lifestyle alternatives seem to be popping up everywhere. Robert Wetzler, associate director of healthcare for Fitch Inc. says that while brokerage reports are available for publicly traded assisted living companies, financiers, do not have the same tools available to help make informed decisions about the assisted living sector as a whole. Now financiers can get a better idea of the industry’s potential with a newly released investment guide.

The National Investment Center for the Seniors Housing & Care Industries and Fitch Inc. have released the Fitch/NIC Investment Analysis of Assisted Living Properties. The guide describes this asset class and highlights its unique investment considerations, including risks and returns, demand and supply, key underwriting factors, and attributes and cautions about investing in this sector.

According to Robert G. Kramer, executive director of NIC, financiers have a tendency either to lump seniors housing and care with healthcare or with other types of commercial real estate, when making performance assumptions or market generalizations. But the seniors housing and care has different demand and supply drivers than hospitals, physician practice groups, pharmaceuticals, HMOs and other traditional healthcare segments.