Wendy Simpson, chairman, president, and CEO of LTC Properties (NYSE: LTC), participated in a video interview at Nareit’s REITworld: 2018 Annual Conference in San Francisco.
In discussing the challenges and opportunities in health care real estate this year, Simpson said there has been “quite a bit of building in the last several years” in senior housing, noting that challenges include leasing up properties as they come online.
“I think that building has somewhat abated. It’s not gone away, but it’s not as much as it was in the last couple years,” she said. “The opportunities are going to be for the properties now to begin having occupancy increases.”
Simpson said that affordable options for assisted living is a much-discussed industry issue and that companies are trying to figure out how REITs can participate.
“I think it’s going to need a lot of government assistance, whether it’s through … subsidies or paying for the service at an assisted living,” Simpson said.
Looking ahead to possible senior housing trends in 2019, Simpson said she anticipates more optionality in properties.
“The baby boomers are bringing a desire to continue to manage their own lives in a different setting,” she said, adding that they still want input in amenities like dining options.