Seniors Housing Weekly Update - One-Year Returns That Can't Be Beat

October 9, 2012


October 9, 2012. 60 Seconds with Steve Monroe. After bottoming out exactly 12 months ago, seniors housing and care stocks and health care REITs have shown out-sized returns.

One-Year Returns That Can't Be Beat

It has now been a year since the greatest value disconnect that ever hit the seniors housing and care sector, as well as the health care REITs. For those of you who did not listen to our advice early last October, when we said investors should go long the entire sector, well, listen and weep. In the private pay seniors housing side, one-year returns have ranged from 50% to 206%, with an average over 100% (ok, I’m leaving out Assisted Living Concepts). The skilled nursing sector one-year returns ranged from 29% to 245%, and if you remove Sun Healthcare as a result of its takeover premium, the top 12-month return was 75%.  Not too shabby for a sector “decimated” by the Medicare cuts. And the health care REITs, which should not show the same volatility as their tenants, also hit bottom a year ago. Health Care REIT, HCP, LTC Properties, National Health Investors and Ventas are all up a not too coincidental 35% in 12 months. Now, if only you had listened and took the risk on Sabra, you would have a 150% gain today.  


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