Our management expertise, access to low-cost capital, and proven track record position us to take advantage of significant growth opportunities in the highly fragmented and growing $1 trillion seniors housing and healthcare real estate market. These opportunities are supported by powerful demographic and financial forces: aging Baby Boomers; a sharply rising 85+ population; increased healthcare spending; and growing demand for lower-cost outpatient settings.
$1 Trillion Seniors Housing and Healthcare Real Estate Market Provides Opportunity for Growth
- Public REITs own <15% of the $1 trillion seniors housing and healthcare real estate market.
- Future "private-to-public" consolidation opportunity is a powerful value driver for Ventas shareholders.
- Seniors housing and healthcare providers will sell their real estate to well-capitalized REITs, such as Ventas. These transactions will free up capital for hospitals, nursing home operators and seniors housing care providers to reinvest in technology solutions, expansion, acquisitions and working capital.
Healthcare Spending Expected to Rise to 20% of GDP by 2022
- Demographic forces will drive growth in healthcare spending. Aging Baby Boomers and the 85+ population are expected to grow at three times the rate of the overall population, supporting the projected increase in healthcare spending from 18% to 20% of GDP by 2022.
Strong Fundamentals Drive Growth
- Anticipated growth in 85+ cohort supports the expansion in private pay seniors housing business.
- Demand for seniors housing will likely outpace the supply of new buildings, creating a favorable pricing environment.
- Increase in 65+ population provides support for growth in MOBs.
MOBs Benefit from Cost Containment, Growing Outpatient Visits
- With 79 million aging Baby Boomers and the anticipated 25 million newly insured individuals, demand for outpatient services in our MOBs will increase.
- Patient visits to MOBs will grow over the next decade as cost containment pressures shift delivery of medical services to lower-cost outpatient settings.