The rapidly aging population is expected to be a boon for senior housing. After having a rocky few years during the Covid-19 pandemic, assisted and independent living facilities are on the road to recovery. Occupancy, while not at pre-Covid levels, is improving. What's more, demand is increasing at the same time new construction slowed down due to the health crisis.
mountain Welltower 5-year performance "Welltower has brought on operational experts from the apartment business, for instance, to really try and professionalize, institutionalize things like revenue management, expense management, customer service, employee retention," he said. "These are all things that the senior housing industry can get a lot better at, and I think they will and that's just going to drive incremental profitability over time.
presents a compelling opportunity to increase exposure to seniors housing at an attractive valuation, though we acknowledge VTR's [net operating income] growth will likely continue to trail that of WELL due to less-upside in VTR's fully-stabilized Canadian Senior housing operating portfolio ," wrote analyst Hughes. Welltower has 6% upside to the average analyst price target, while Ventas has 18% upside, according to FactSet.