NIC News & Events
NCREIF Article Highlights How Seniors Housing has Outperformed CRE
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The third quarter, 2009 Property Index Performance Report published by the National Council of Real
Estate Fiduciaries (NCREIF) shows that reporting seniors housing properties have outperformed the broader
National Property Index (NPI) since at least 2003. Authored by Beth Burnham Mace, NIC board member and
a director in the Research Group at AEW Capital Management, L.P., the report states that seniors housing
properties in the NCREIF database generated a cumulative total return that is 2.3 times their mid-2003
value. This compares with a cumulative gain of 1.4 for the apartment index and 1.5 for the entire NPI.
In addition, seniors housing has recently continued to outperform the apartment index and the overall
NPI. Based on total returns (total return = income return + appreciation return), seniors housing was
down 6.74% in the past year while the apartment index was down 23.03% and the total NPI down 22.09%.
"This is a great step forward for seniors housing", states Robert Kramer, president, NIC. "We are grateful
to Beth Mace for her leadership, and to others who have been instrumental in the effort to highlight
the performance of seniors housing in the NCREIF database". The NCREIF index currently has 13 managers
reporting data on 66 stabilized seniors housing properties. The value of these properties as of 3Q09
is $2.355 billion. "NIC fully supports this effort and will work with NCREIF over the next few years
to increase the number of properties reporting data", states Kramer.
CLICK HERE
for a PDF copy of the article.
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