Unlocking Alternatives: Investing Beyond the Major CRE Asset Type

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SENIOR HOUSING: PERFORMANCE

• Transaction volumes slowed in 2022-2023 after a particularly active 2021. This record peak in investment was driven by institutional interest: buyers such as Harrison Street, Welltower and Omega all executed substantial portfolio acquisitions. • Despite the lack of liquidity in the overall market, the sector’s key performance indicators continued to gain strength. After occupancy dipped to below 80% during the height of the pandemic, it has steadily risen again and will son look to surpass 90% once again. Rents continue to be on an upward trend, reaching record levels of 5%+ YoY rent growth during the past four quarters. • Cap rates have generally been compressing since 2016. The sector, as with others, has experienced some expansion of these since rate increases began. • For further information, including a survey of 90 investors in the sector, please see the report below. DIVE DEEPER: • Senior Housing: Investor Survey & Trends Report

Pricing and Volume Trends

$B $1B $2B $3B $4B $5B $6B

$K $50K $100K $150K $200K $250K $300K

Senior Housing Transaction Volume (LHS) Price Per Unit - Nursing Care (RHS)

Price Per Unit - Senior (RHS)

Rent & Occupancy Performance

Avg Cap Rates

4.0% 4.5% 5.0% 5.5% 6.0% 6.5% 7.0% 7.5% 8.0%

Median Occupancy (LHS) Average Rent Per Unit (RHS)

$0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000

70% 75% 80% 85% 90% 95%

1Q2015

3Q2015

1Q2016

3Q2016

1Q2017

3Q2017

1Q2018

3Q2018

1Q2019

3Q2019

1Q2020

3Q2020

1Q2021

3Q2021

1Q2022

3Q2022

1Q2023

3Q2023