Silver Wave Housing and Care
Paul Goodman@paulgoodman24
+4.0%
since Sep 30
The idea
I'm betting on the aging population reshaping healthcare real estate and care delivery. Since almost no new senior housing got built after 2020, existing landlords should enjoy years of pricing power as the 80-plus population surges, so about half the portfolio sits in senior housing and nursing facility owners. The other half is in operators delivering home health, hospice and facility-based care, since insurers keep pushing treatment toward cheaper settings. I've concentrated this into ten high-conviction names with no cash buffer here, since I hold that elsewhere.
What it owns
- These companies own the buildings where an aging population must move, while almost nothing new has been built, so rents keep rising as occupancy climbs. · Welltower Inc.The largest senior housing landlord collects the most direct benefit from a shortage of new beds and a rising tide of older tenants filling existing buildings., Ventas Inc.It owns a large senior housing portfolio still climbing back toward full occupancy, which gives it more room to benefit as the aging wave pushes rents higher., CareTrust REITIt owns skilled nursing and senior housing properties and keeps buying more while few competitors build, capturing pricing power from an aging population., American Healthcare REITIt is one of the most concentrated ways to own senior housing itself, so it moves directly with the supply shortage as the older population grows., Omega Healthcare InvestorsIt collects rent from nursing home operators, a business that gets steadier as the oldest population grows and beds remain scarce.52%
- Insurers push care to the cheapest place, the living room, and these companies deliver everything from hospice to IV drugs there. · Chemed CorporationIts VITAS hospice unit is a leading provider of the low-cost, in-home care that insurers keep steering patients toward as the population ages., Addus HomeCareIt provides personal care in the home, the cheapest setting available, which is where insurers keep pushing care as an alternative to costlier facilities., Option Care HealthIt is the largest independent home infusion provider, moving hospital-grade treatment into living rooms as insurers shift care to cheaper settings.27%
- These companies run nursing and rehab facilities where occupancy is climbing as the population over eighty arrives in growing numbers. · The Ensign GroupIt runs skilled nursing facilities and keeps buying struggling ones cheap, so it wins twice from growing numbers of older patients and scarce beds., Encompass HealthIt runs rehab hospitals where older patients recover after strokes, falls and surgeries, so its patient count grows almost mechanically with the aging population.21%