Why Senior Living Companies Must Take More ‘Intelligent Risks’ in 2024

The year 2024 may see an improvement in the conditions for senior living mergers and acquisitions, but senior living providers need to closely monitor the capital markets. With debt maturities in the industry looming, future prosperity could be at stake. Financial experts advised in a National Investment Center for Seniors Housing and Care (NIC) webinar that consistent lending relationships and sustainable cash flow are key for operators seeking growth in the year ahead. As occupancy levels are expected to rise, operators should focus on improving net operating income (NOI) and establishing sustainable NOI coverage to access capital. While lenders are currently conservative due to economic realities and elevated interest rates, capital partners and operators should prioritize communication and shared financial goals for future success. And as well-capitalized REITs are expected to lead the industry’s recovery, multi-site CCRCs are also performing well despite challenges. Looking ahead, taking intelligent risks and building trust with lending partners will be crucial for senior living companies to access the capital needed to meet future demand.