Demand for high-end senior housing is poised to take off, according to a recent article in National Real Estate Investor.
Charles Bissell, managing director of valuation and advisory services with commercial real estate services firm JLL, based in Richardson, Texas said,
“It is a strong sector right now, and it really all goes back to the health of the economy and the health of the housing market. When seniors have the ability to sell their houses and generate significant proceeds from those sales, they are a lot more bullish about going into a luxury community.”
[You can read the full article here.]
One REIT that I like in this sector is LTC Properties, Inc. (LTC). The company builds and now operates more than 200 seniors housing and health care properties across the U.S.
For the first quarter of 2017, the company reported income of 78 cents per share, which was in line with analysts’ expectations.
I bought shares of LTC in Sept. 2014 for $39. They’re now selling for about $47. Over the past 52 weeks, prices have ranged from $43-$54. But with a 4.82% yield, plus the upcoming demand for their product, I don’t mind waiting for a comeback.
Until next time,