Seniors’ residences — a market closely linked to demographic community trends
Seniors’ residences in Quebec are multifaceted, which clearly sets the sector apart from other real estate sectors. The rapidly increasing demand for beds combined with a lack of spaces and with facilities that are poorly adapted to the province’s growing needs, has led to rapid changes in living arrangements in private seniors’ residences, and has emerged as a major issue for public homes for the coming years. Government policy on the matter—which increasingly relies on private establishments—has a huge impact on the sector of activity and can also provide very promising opportunities for development.
The wide-ranging types of residences available today mean that analysts must have a deep understanding of the market. The real estate aspect is just one part of the value of a seniors’ residence: for just one real estate asset—besides the usual determining factors that affect value—there may be a huge variance in value depending on the type of residence, the type of residents (level of independence), the range of services provided, the nature of contracts with subsidized rent (bought space, intermediate resource, residential and long-term care centre), and depending on the reputation and quality of the residence’s management.
Therefore the value of a seniors’ residence is an enterprise value including the building (the main asset) and the value of the business itself, which is measured in terms of net operating profit based on performance in the specific market for this sector of activity.
The financial analysis methods and innovative evaluation tools developed by our experts ensure that you obtain relevant information and results that reflect the trends of your type of residence’s market.
- Highlights the property’s and the residence’s strong points and weaknesses;
- Provides a comprehensive financial analysis of the residence;
- Carefully reviews the financial statements for prior years;
- Compares rentals with the market’s leasing trends;
- Analyzes and standardizes the residence’s operating costs;
- Identifies measures for reducing items of expenditure;
- Calculates the building’s financial and performance ratios;
- Provides a real estate market study for the specific sector;
- Provides a transaction record and analysis for comparable buildings;
- Evaluates investment risk;
- Compares and positions the residence in the market;
- Evaluates the residence’s effective potential based on the market and sectorial outlook; and
- Demonstrates estimated value based on facts and indications discerned in the market.