Seniors Housing Weekly Update-- Senior Care Stocks Decline
June 5, 2012
Senior Care Stocks Decline
May was a rough month for seniors housing and care stocks. On the skilled nursing side, only Advocat posted a price increase, and this was because it received an unsolicited takeover offer double the then existing price. And on the seniors housing side, only Capital Senior Living eked out a small gain in the month. Seven of the 13 stocks posted double-digit declines in May, far worse than the overall market, which was also battered. While there is nothing specific that would cause the seniors housing sector to drop, a weakening economy and even lower interest rates are not going to help the finances of seniors and their families thinking of making the move, whether need-based or not. Despite this investor apathy for public equities, investor interest in individual properties and portfolios still remains strong.
The health care REITs were not immune to the market slide either, despite their still attractive average yields between 5% and 6%. All but two tumbled in May, but at least most of them are still up for the year. A continued safe haven for investors.