Real estate investment trusts Healthpeak Properties, Omega Healthcare Investors and Ventas published investor updates Monday in advance of their participation at the REITworld: 2025 Annual Conference sponsored by Nareit.
Omega Healthcare Investors
In its update, Hunt Valley, MD-based Omega said it expects to double in size over the next decade.
“Even as the largest owner of [skilled nursing facilities], we still only own 5% of the market. Given the accretion created from acquisitions, the fragmented ownership of SNFs provides a significant opportunity for further growth,” the REIT said.
Skilled nursing is an attractive asset class, Omega said, because more people are discharged from hospitals to SNFs than to any other type of care setting. Further, the REIT said, SNFs are the lowest-cost provider of post-acute, 24-hour nursing care.
“SNFs provide care for much higher acuity patients that can be handled in senior housing or home health settings — so hospital discharges to SNFs have held steady,” Omega said.
To date this quarter, Omega said, it has paid a $0.67 per share quarterly cash dividend on
common stock and acquired a 49% equity interest in a 64-property skilled nursing and assisted living portfolio for $222 million under a real estate joint venture with Saber Healthcare and affiliates.
Ventas
Meanwhile, Chicago-based Ventas reported that year to date, it has closed $2.3 billion of accretive senior housing investments (incremental $100 million since Oct. 29).
The REIT said that it continues “to build on investment momentum with large and growing opportunity set to capture value-creating opportunities in senior housing and meaningfully expand participation in the multiyear senior housing growth opportunity.”
Ventas said it expects to see the fourth consecutive year of double-digit senior housing operating portfolio, or SHOP, same-store net operating income growth by year’s end during “an unprecedented multiyear growth opportunity.”
Other highlights of the REIT’s report:
- Estimated November quarter-to-date SHOP same-store average occupancy growth was about 290 basis points year over year.
- $3.3 billion of equity has been raised, including $1.2 billion of unsettled forward sales agreements outstanding, as of Dec. 5, at an average price of $71.98 per share.
- In December, the REIT issued $500 million of senior notes due in 2036 at 5% cash coupon (5.2% GAAP rate) to prefund debt maturing in the first quarter of 2026.
- In the 65 Ventas-owned communities leased to Brookdale Senior Living, a 33% year-over-year cash rent increase will take effect Jan. 1.
Healthpeak Properties
Denver-based Healthpeak Properties said that it continues to execute on operating initiatives to drive higher occupancy, margin expansion and long-term growth.
Healthpeak’s 34 continuing care retirement / life plan communities average 470 units across an average of 50 acres on an integrated campuses with indoor and outdoor amenities “unmatched by traditional rental senior housing,” the REIT said.
Healthpeak said the operating strategies for its senior living segment are focused on operator alignment, a competitive pricing model, portfolio optimization and a strategy for continued growth that includes realizing embedded positive mark-to-market on in-place versus market entry fees, creating upside as units turn.
Healthpeak’s CCRC cash net operating income growth has outperformed rental senior housing since Jan. 1, 2020, the company said Monday.
The REIT said that its CCRCs are positioned in high-growth markets with large and growing older adult populations. For instance, the Tampa, FL, area has the largest number of units (2,049), whereas Boulder, CO, leads in its median home value ($850,933).