RESEARCH • 13 August 2020

Senior care: a strong long-term opportunity

Due to higher operator risk, investing in senior care is a strong buy for investors who want to move up the risk curve and add value-add elements to their portfolios.

  • The COVID-19 pandemic is having a major impact on senior care across Europe. We expect the sector to be impacted by weaker resident demand, higher costs and a less dynamic investment market throughout 2020 and some of 2021.
  • In the near term it’s all about the ability to find an asset that is resilient to changes in regulations and has the capacity to manage crisis situations such as COVID-19. Fund managers must negotiate an attractive entry price that compensates for the short-term weakness.
  • We remain positive in the long term. We believe the strong demand characteristics associated with an aging population have not changed. Moreover, the sector is expected to undergo a transformation in which the contribution of the private sector will increase. This has the potential to become a strong long-term opportunity underpinned by supportive fundamentals.
  • Senior care is a strong buy for investors who want to add value-add elements to their portfolios.




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