The valuations conversation in seniors’ living has never been louder. With global capital flowing into land lease, listed groups circling aged care, and retirement village contracts evolving, the question for investors and operators alike is: what is really driving value?

Retirement living: contracts, care – and consistency

Unlike commercial or residential property, retirement villages are valued as going concerns – operations plus real estate. Standard practice is a 40-year discounted cashflow (DCF) model overlaid with actuarial assumptions: length of stay, entry age, couples versus singles. Occupancy, churn and resale processes flow straight through to value.

“It’s the right product in the right location, managed w