NIC: Financial indicators show slight improvement in nursing homes
The National Investment Center for the Seniors Housing & Care Industries released its quarterly Key Financial Indicators Monday, revealing favorable results for nursing homes.
Permanent debt delinquencies decreased to 10.9% from 12.54% for skilled nursing in the first quarter 2004, compared with the previous quarter, a positive sign for nursing homes. They also fell to 6.15% from 6.72% for assisted living.
However, loan volume placed was down to $499 million in the first quarter of 2004 compared to $527 million in the year-ago quarter. The loan performance rate for performing properties improved slightly, to 94.2% from 93.1%.
"Ideally, the performing loan rate for permanent debt should be around 97 to 98 percent in order for the industry to be on par with other real estate classes," said Anthony J. Mullen, NIC's research director.
The median occupancy rate for skilled nursing held steady from last year's first quarter at 86%, while the median occupancy rate for assisted living stabilized properties increased to 86%, compared with 83% in the year-ago quarter.