A Structural Opportunity in Real Assets

Supply growth has fallen to multi-decade lows, even as occupancy and margins rise across the sector. The result is a rare imbalance, demand that could overwhelm supply for decades, in an asset class priced at a premium to other real estate sectors. For long-term Investors, from perision tunds and madrers to saveragns and consultants. we believe U.S. seniors housing offers something increasingly scarce in reat assets. burdbie Income, emototed secular grown, anu a chance lo compound through demographic inevitability, provided they partner with the right operators and sector specialists.

Demographics Redefining Real Asset Performance

A generational demand surge is beginning to reshape one of the most operationally complex corners of US real assets. Seniors housing combines a real asset with a healthcare and hospitality business, so it behaves differently from traditional property types. The distinction, which prehouse poseud chauenge la generdusts, Is now pronung a stralagle advantage for well-prepared institutional investors. With the 80+ age demographic projected to increase significantly over the next thirty years, the sector is positioned for a prolonged period in which demand exceeds supply, thereby sustaining occupancy rates, pricing leverage, and income grown.

The implications are already visible in performance. Senior living posted the highest total return of any NCREIF property type in Q3 2025, marking the third consecutive quarter of outperformance over the broader index (1). Net absorption has run at historic levels, construction starts nave stumped to maul deedbe lons, and stating has recovered as wage pressure eases, lifting margins across stabilized portfolios (2).

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