Amid the continuing financial volatility from US President Donald Trump’s tariff coverage, Gupta suggests advisors and traders are in a beneficial place to enter the REIT market, which he says is presently discounted by nearly 20 per cent to the NAV. He provides that any resolutions to the US tariff state of affairs would improve the long-term prospects of the REIT sector.
“The yield appears to be like good and the leverage is a lot better positioned as properly,” he mentioned. “And any optimistic information round tariffs will assist the general REIT sector carry out properly within the coming years.”
Considered one of senior housing’s most tasty elements in an financial downturn is its demographic-based demand, in line with Gupta. Canada has an growing older inhabitants, with the 85-year-old plus inhabitants doubtlessly tripling over the subsequent 25 years, in line with StatCan. Gupta says that these demographic figures mixed with the resilient nature of senior housing is offering a wholesome outlook for the sector.
“Within the final three or 4 recessions, healthcare REITs and senior housing REITs have truly outperformed due to their defensive enterprise mannequin,” he mentioned. “In the event you’re an 85-year-old senior, you do not test what the GDP development outlook goes to be within the subsequent 12 months earlier than you enroll right into a retirement dwelling … it’s extremely uncommon mixture of development and defence as properly.”
COVID closely impacted the senior housing sector, with occupancy charges dropping from over 90 per cent in through the pandemic to simply underneath 80 per cent after COVID. Gupta says that the provision for senior housing has remained comparatively flat lately, and he predicts the provision facet will solely meet up with demand in 2029 or 2030. With this in thoughts, Gupta says senior housing might see a “golden arrange” as growing demand piles stress onto a restricted provide.