Takeaway Points From a Senior Housing REIT’s Fourth Quarter Conference Call

The transcript for this posting comes from Seeking Alpha. The conference call is between the Health Care REIT‘s executive board and investors, discussing 2012 fourth quarter earnings.  Health Care REIT bought Sunrise Senior Living last year (as discussed here).  Health Care REIT is one of the country’s largest owners of senior housing and also owns medical offices. As for senior housing, the takeaways:

  • The have invested in high-quality facilities w strong operators who target private pay seniors. This strategy reduces their exposure to government reimbursement. They’ve been selling off assets that do not fit this criteria.
  • They are the largest owner of private pay senior housing in the world.
  • New supply to inventory in the U.S. is only 2%, less than demand.
  • Modest improvement in housing prices helps this part of their portfolio.
  • Entrance fee communities (CCRC) have a 76% occupancy rate, much lower than assisted living or nursing homes.
  • They are in the process of turning over the CCRC (a non-core asset) to rentals…..
Transcripts of conference calls include the Q & A session after the earnings report. The Health Care statistics are challenged here and clarification is asked for. Not so with company press releases.

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