Rising India, Inc. Announces Assisted Living Expected to Continue
Its Senior Housing Reign in 2014
TUSTIN, CA--(Marketwired - Jan 8, 2014) - Rising India, Inc.
(OTC Pink: RSII) announces assisted living expected to continue its
senior housing reign in 2014.
Assisted living is expected to continue its domination of the
senior housing investment and acquisition scene in 2014 following a
year where the sector grabbed industry headlines for new
construction volume and low cap rates.
"For new development and newer, Class A product, assisted living
and memory care are probably going to be the most attractive and
easiest for us to sell. Everyone wants them," says Jeremy Stroiman,
CEO of brokerage firm Evans Senior Investments.
Next year will probably look a lot like 2013, says Kent Eikanas,
president and chief operating officer of Summit Healthcare
REIT, Inc. (formerly Cornerstone Core Properties REIT), with
investor interest expected to revolve more around senior living
than skilled nursing.
"People are going to be a lot more comfortable with the lower
acuity of independent living and assisted living," Eikanas says.
"As you go up the acuity scale, the amount of investors gets less
and less."
Buyers are keeping an eye on the expected rise in interest
rates, widespread capital availability, and overall positive
direction of the economy, he says.
"Our focus will continue to be on assisted living, memory care,
and skilled nursing, but not so much on independent living," says
Brian Beckwith, CEO of private investment management firm Formation
Capital. "There are still plenty of quality assets that are out
there."
Assisted living construction has sparked some fear of
overbuilding, but most agree it's a market-by-market situation that
calls for increased scrutiny on where they locate new projects or
acquisitions.
"There is a little bit of an increase in new construction
starts, primarily in assisted living. There's less risk as it
pertains to independent living when you're considering construction
starts," says Justin Hutchens, president and CEO of National Health
Investors. "Overall, I feel fairly bullish about both independent
living and assisted living. The demand characteristics are as
strong as they've ever been, and the new supply really hasn't
caught up with the absorption rate."
The two big variables to impact senior living are potential
interest rate implications and how quickly rates rise, says Bradley
Clousing, managing director at Senior Living Investment
Brokerage.
"So far, we haven't seen much of an effect on cap rates," he
says. "There's still been an overabundance of capital and buyers in
the market."
With interest rates going up, it's hard to get stabilized assets
for the cap rates investors have been buying at and still expect
cash flow, says Eikanas. Buying on performance numbers with the
assumption that operators can improve performance may tail off as
investors take a more realistic look at past performance.
"The reality of rising interest rates has a direct impact on our
cost of equity capital, because investors that pursue
income-oriented stocks will have other low- or no-risk options as
rates go up, reducing demand for REITs," says Hutchens.
The net result, he says, is that REITs will face narrower
margins that will be partially offset from cap rates going up and
by companies adding more volume to growth plans to continue to
raise dividends for shareholders.
That volume could come from smaller owners and operators looking
to exit the industry because of new development or other
drivers.
"In the last few months, we've seen probably a dozen assisted
living opportunities where someone just came into the market [with
a new project] and the owners are freaking out," says Stroiman.
A significant amount of clients Senior Living Investment
Brokerage has represented in 2013 have 5-to-10-year-old properties,
says Clousing, and are now considering the path ahead.
"Looking at the future from an independent operator standpoint,"
he says, "we've had a lot of those sellers coming to market now
because they feel like pricing is good; regulations are getting
more stringent on state-by-state basis; and when you add in
additional complexities from the Affordable Care Act and what
that's going to mean for employers, and seeing increased
competition come in, that's what spurred a lot of the recent sales
we've had."
Written by Alyssa Gerace
For more information, please visit www.risingindiainc.com
About Rising India, Inc.
Rising India, Inc., ("RSII"), is a holding Corporation that
develops independent living, assisted living and memory center
communities. Rising India's management are specialists in acquiring
raw land and having it entitled for the appropriate use and then
build the proposed project.
Forward-Looking Statement Any statements made in this press
release which are not historical facts contain certain
forward-looking statements; as such term is defined in the Private
Security Litigation Reform Act of 1995, concerning potential
developments affecting the business, prospects, financial condition
and other aspects of the company to which this release pertains.
The actual results of the specific items described in this release,
and the company's operations generally, may differ materially from
what is projected in such forward-looking statements. Although such
statements are based upon the best judgments of management of the
company as of the date of this release, significant deviations in
magnitude, timing and other factors may result from business risks
and uncertainties including, without limitation, the company's
dependence on third parties, general market and economic
conditions, technical factors, the availability of outside capital,
receipt of revenues and other factors, many of which are beyond the
control of the company. The company disclaims any obligation to
update information contained in any forward-looking statement. This
press release shall not be deemed a general solicitation.
Contact Information: Rising India, Inc. (714) 259-0933
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