- 12,000 people per day turning 65 for the next 45 years, making it the biggest market opportunity in our lifetime. Our key investment in this area is Care Cap Properties, a well run diversified skilled nursing facility REIT spun out of Ventas last year. CCP pays about 7.5% annual dividend with strong financials and about a 70% dividend payout ratio. Based on CNL’s analysis, the skilled nursing facility business should have lots of runway. One caveat though, is this business is almost entirely dependent on Medicare and Medicaid so changes in the political climate and to a less degree interest rates will impact the business in a material way. As long as there is no movement to cut Medicare reimbursements, this is a strong long term above average yield play with probable dividend increases in the future.
Source: Understanding Seniors Housing & Healthcare Markets | CNL Securities