Opportunities in elder care.

April 25, 2020

by a searcher from Indiana University, Bloomington/Indianapolis - Kelley School of Business in The Colony, TX, USA

I have been interested in assisted living/Senior living. The recent Covid 19 challenges may mean more regulation for the industry. For those involved or well experienced do you see value purchase opportunities or more risk from unknown regulatory expectations?

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Reply by a searcher
from College of William and Mary in Bethesda, MD, USA

I think you will see some value opportunities the longer this goes on. Some facilities will be stigmatized and need to rebrand or sell. Particularly in the skilled nursing arena. AL and IL may take a hit. Potential residents do not need to move into a dedicated facility as they are usually more mobile and have options. On the other hand, they are inherently more independent and may not have the same exposure risk because they can self isolate within a facility. Either way, the demographics remain the same and the need for senior care and services will remain. The question will be in what form, in my opinion.

Reply by an investor
from Boston University in New York, NY, USA

This is a very good industry. One that is expected to continue to grow faster than the US population growth on average for the coming 5-10 years. With that, I’ve seen that occupancy levels are down due to COVID concerns, which could create value investing opportunities. The longer COVID continues the more these opportunities will arise, but once it begins to pass we will see an uptick in occupancy rates again.

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