Loan volume doubles for seniors housing in third quarter
Loan volume in seniors housing and care in the third quarter of 2004 more than doubled -- to $783 million, compared with $336 million in the second quarter -- according to the National Investment Center for the Seniors Housing & Care Industries (NIC).
Loan volume expanded by almost one-third from the third quarter of 2003, according to NIC, which released its most recent NIC Key Financial Indicators this week. Loan volume represents the quarterly lending activity of the top lenders that make permanent debt or short-term debt investments in seniors housing and care, including Fannie Mae, Freddie Mac and several of the larger credit companies and banks.
Loan volume in the second quarter was so low it now appears to be an aberration based upon the numbers in the third quarter, NIC said. Loan performance, a measure of how well loans are doing, also showed overall improvement in the third quarter, with steady growth in performing loans to 96% during that time from 93.5% a year ago, NIC said.
NIC also said that the overall capitalization rate remained steady for assisted living and skilled nursing during the quarter.