Takeaways included:
- 68% of survey respondents expect to see a continued increase in capitalization rates over the next 12 months, with debt market liquidity being the top concern of 51% of the respondents.
- Most survey participants (49%) are targeting core-plus investment strategies, while 34% are focused on opportunistic or distressed investment strategies, with nearly $18 billion of sector-specific loan maturities expected over the next 24 months.
- Market participants are gravitating back to the more need-driven segments with 33% of survey participants targeting assisted living.
- Basis point spreads between the going in capitalization rate and terminal capitalization rate have compressed, with nearly 20% of respondents underwriting a 25 to 50 basis point spread.
- Environmental, social and governance (ESG) considerations continue to gain notoriety in the seniors living and care sector, with 59% of survey respondents viewing ESG initiatives as being a positive attribute, but only 9% willing to provide a premium to pricing where ESG is prevalent.
Download the report for complete survey results, industry trends and key valuation indices.
