While nobody in the field is shouting it from the mountain tops, the long-term care sector has been enjoying more than its share of easy layups lately. That could be coming to an end in the not too distant future.
Earning more than the cost of capital is not unreasonable and can generally be accomplished without taking extraordinary risks, but New York is hamstrung by investment restrictions. Investment returns are important to the financial health of a CCRC and can help minimize fee increases for residents.
The cycle of rising interest rates might have begun by the time you read this, which means CFOs should act to make the most of what the market is about to give them. Do not get caught unaware.
As interest rates slowly nudge upward and public financing agencies remain under scrutiny, analysts look at the ramifications for skilled nursing and seniors housing