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June 2019

Healthcare Assisted Living Facilities & Services

The assisted living industry is comprised of a full continuum of properties catering to seniors ranging from REIT-backed residential developments to skilled nursing and acute care hospitals utilizing an MSO model to differentiated operators specializing in memory care.  Many providers are predominantly reliant on private pay and, accordingly, have more limited regulatory risk exposure than other healthcare subsectors. We’ve seen significant momentum in the assisted living market driven by three macro trends: (i) modest levels of new construction not keeping pace with the population demographic shift, (ii) consolidation of a highly fragmented landscape comprised of local and regional owner/operators and (iii) operational and service-level improvements realized by larger platforms to increase property-level net operating income.