Silver Linings Start to Emerge in Senior Living Industry Credit Outlook

Despite a wall of debt maturities looming over senior living operators, there are signs of improvement on the horizon. Lonnie Hendry, chief product officer of Trepp, notes that banks are returning to senior living lending amidst a thawing lending environment. While some properties are struggling with high vacancy rates and debt service payments, overall operating revenues are increasing, expenses are stabilizing, and NOI margins are improving. The sector’s loan delinquency rate is expected to rise, but remains more favorable compared to other industries. With a positive sentiment for the year ahead, the industry faces challenges, but lenders are showing enthusiasm for new opportunities in the senior living market.