Commercial Investment Real Estate is the magazine of the CCIM Institute, the leading provider of commercial real estate education. CIRE covers market trends, current developments, and business strategies within the commercial real estate field.
Issue link: http://cire.epubxp.com/i/443516
22 January | February | 2015 Commercial Investment Real Estate SENIORS SENIORS SENIORS SENIORS SENIORS HOUSING HOUSING HOUSING HOUSING HOUSING SENIORS SENIORS SENIORS SENIORS SENIORS SENIORS SENIORS SENIORS SENIORS SENIORS SENIORS SENIORS SENIORS SENIORS SENIORS SENIORS SENIORS SENIORS SENIORS SENIORS SENIORS SENIORS SENIORS SENIORS SENIORS SENIORS SENIORS SENIORS SENIORS SENIORS SENIORS SENIORS SENIORS SENIORS SENIORS SENIORS SENIORS SENIORS SENIORS SENIORS SENIORS SENIORS SENIORS SENIORS SENIORS SENIORS SENIORS SENIORS SENIORS SENIORS SENIORS SENIORS SENIORS SENIORS SENIORS SENIORS SENIORS SENIORS SENIORS SENIORS SENIORS SENIORS SENIORS SENIORS SENIORS STAC S STAC HOUSIN HOUSIN HOUSIN HOUSIN HOUSIN HOUSIN HOUSIN HOUSIN HOUSIN HOUSIN HOUSIN HOUSIN HOUSIN HOUSIN HOUSIN HOUSIN HOUSIN HOUSIN HOUSIN HOUSIN HOUSIN HOUSIN HOUSIN HOUSIN HOUSIN HOUSIN HOUSIN HOUSIN HOUSIN HOUSIN HOUSIN HOUSIN HOUSIN HOUSIN HOUSIN HOUSIN UP UP STA STA STA STA Last year's investment performance signals a strong 2015. by Beth Burnham Mace Seniors housing generated solid returns for investors in 2014. By many measures, the returns were well above those of other invest- ment opportunities. T e sector has attracted growing attention from seasoned veterans in the sector as well as new entrants who f nd the fundamentals compelling and the investment thesis reasonable. A look at the sector's 2014 performance helps explain the factors that will shape this year's investment potential. One-Year Returns Investors are attracted to seniors housing's favorable investment return and portfolio diversif cation attributes. While the data is quantif able for only a limited number of institutional-quality prop- erties, NCREIF has been collecting income and appreciation returns for seniors housing from its tax-exempt plan sponsors since 2004. T e data show that seniors housing returns have been quite strong. In fact, one-year returns for third quarter 2014 were more than 900 basis points higher than for the broad property market tracked by the NCREIF Property Index, or NPI. T is equated to a one-year total return for seniors housing of 20.37 percent versus the NPI of 11.26 percent. T e one-year return also compares favorably to stock and bond investments that tallied returns of 19.74 percent for the S&P; 500 Index and 2.28 percent for the Barclays Capital Gov- ernment Bond Index. Longer term, on a 10-year basis, seniors