Key insights
- The author expresses a bullish view on the senior living industry due to demographic trends and supply constraints. They highlight Sonida Senior Living (SNDA) as a potentially attractive investment due to its aligned sponsor, incentivized management, and recent merger. This suggests a positive, albeit limited, influence on the US equity market, specifically within the real estate and healthcare sectors.
I've been building a position in Senior Living companies. BKD is the obvious one, but I've have a basket including NHI.
The industry has a powerful setup: an aging population is driving demand, while years of underbuilding have tightened supply and improved pricing power. I think that makes senior living an attractive long-term themes.
Sonida Senior Living SNDA is a better buy I think. It has an aligned sponsor, a highly incentivized management team, (recent grants with a tiered threshold up to $66!! ) and a recent transformative merger with CHP that should improve scale, synergies, and operating leverage.
Is anyone involved or invested in the space that has a view ?