May 12, 2026 – 60 Seconds with Ben Swett: The REITs’ Acquisition Appetite
Q1 earnings highlighted strong occupancy, margins, and rate growth, but the biggest story is surging seniors housing M&A. Public companies and REITs are deploying major capital into acquisitions, driving competition and asset prices higher, especially for Class-A properties. More mergers and record deal volume could follow as firms position for long-term demographic demand.
Transcript
With most of the Q1 earnings results in, we’ve been sifting through a lot of good news on occupancy growth, resident rate increases, expanding NOI margins and the phenomenal long-term outlooks. But our main takeaway had to be the major M&A plans that almost every publicly traded company has completed so far this year and plans to close throughout the rest of 2026. They represent an enormous amount of capital flooding into the market, and although they are not all playing in the same sandbox, the increased acquisition appetite should have an effect on pricing for assets, particularly for the highly in-demand Class-A, well performing properties.
The REITs will surely feel pressure to grow, and there still should be plenty of discounts to replacement cost out there, but not like the M&A market of one or two years ago. If we’re in an arms race to build SHOP and skilled nursing portfolios to take advantage the future demographic opportunity, perhaps a few whole company acquisitions and mergers could be promising, involving the smaller cap REITs or even Brookdale. We at LevinPro LTC are already on track to record more than 900 deals this year alone, and the dollar volume could set a record too if a couple more major acquisitions take place.
Senior Care’s PR Problem
Media narratives linking REIT ownership to poor care in nursing homes overlook broader factors and industry realities. While abuse exists, capital has also sustained facilities. A $110M verdict and PR risks may deter investment, raise costs, and trigger regulatory backlash.
Sticks and Bricks in ’26?
Interest in seniors housing development is rising, suggesting the long-forecast “Sticks and Bricks in ’26” may partly materialize. While a boom is unlikely, architects report strong demand even as projects lag due to costly debt and uncertain returns. High acquisition prices still favor buying over building, but record per-unit sales could spur more development activity.
Institutional M&A Strategies
Limited new development and strong demographics have sparked a race among investors to grow seniors housing portfolios via M&A. Fierce bidding is pushing prices up and cap rates down, with REITs and returning funds competing for top assets. A BLUEPRINT sponsored webinar will explore what’s driving strategies, cap rate trends and impacts across the market.
