Assisting Accredited Investors Across the Globe
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Team@seniorlivingfund.com
For Investment Inquiry
Mon - Fri: 9:00 a.m. - 5:00 p.m. CST
For Investment Inquiry
SLF Investments (SLF) is a private equity investment company with 20+ assets under management that generated over $24.9 million ($99.8 million annualized) in revenues during Q4 2024. The majority of assets within our real estate investment portfolio are Independent Living (IL), Assisted Living (AL) and Memory Care (MC) communities that were developed and constructed by our sponsor partners utilizing SLF equity.
• Gross domestic product rose 2.5% in 2024
• The housing sector is relatively stabile
• Labor market conditions remain solid. The unemployment rate has been steady since the middle of last year and, at 4% in January, remains low.
• Inflation has eased significantly but remains above the Fed’s 2.0% goal. Total personal consumption expenditures (PCE) rose 2.6% over the 12 months ending in December. The PCE is what the Fed really focuses on when they look at inflation.
Fed officials stated that Trump’s proposed tariffs and mass deportations, as well as strong consumer spending, could push inflation up this year, creating a high degree of uncertainty. Therefore, they will carefully consider any further changes to the Fed rate.
The Fed’s longer term rate projections for the end of 2027 remain the same – they expect the Fed rate to drop another 125 to 150 basis points. However, in September 2024, they projected it would drop the same amount by EOY 2026 and stay the same level though 2027.
The 10-year Treasury yield jumped more than 14 basis points, to 4.43%, when Trump was announced as the victor. Since then, it has generally shown an upward trend, closing at 4.57% at the time of this update. A rising yield often suggests that investors expect stronger economic growth and higher inflation which prompts them to demand higher returns.
· The economy is performing well, is relatively stabilized.
· Inflation remains sticky, above the Fed’s target, they are watching it carefully.
· Trump’s proposals have the Fed and Wall Street concerned about the potential impact on inflation. Those concerns have increased since Trump took office.
· The Fed is hesitant to lower the Fed rate, and at present economists now only anticipate one rate cut in 2025, in the second half of the year, then gradually dropping another 100 basis points over the next two years.
· This is good news for short-term interest rate investors, not so good news for longer-term interest rate investors, and for market cap rates.
To reiterate, falling cap rates are well received when selling a senior housing community. A 1.00% drop in the cap rate (100 basis points) can increase the sale price on a modest-sized senior housing community by over $2M. That $2M is all profit.
A lot can change between now and 12 months from now. Let’s see where Trump’s plans end up, and how the economy performs. As long as inflation goes down, and employment stays strong, that’s what matters. Several reputable sources, including a recent article in the Wall Street Journal, are very bullish on the senior housing sector over the next 5 years. In 2026, the first baby boomers will turn 80, which is generally the average age of individuals who move into senior housing. That, combined with the low levels of new senior housing units that are coming on the market over the next few years (due to the pandemic and high-interest rate environment) means fewer senior housing units for more seniors. A wonderful problem to have! And it will not be solved soon. Please let us know if you would like a copy of the Wall Street Journal article, we are happy to provide it.
The 4th quarter of virtually every year is a tough period to increase occupancy in senior housing. Most seniors wish to spend the holidays in their home. In addition, loved ones visit their elders during the holidays, and often notice a change in their health. These factors lend themselves to a noticeable uptick in occupancy in Q1 of the following year. That common trend has occurred this year. Q4 occupancy was relatively flat in total across all our communities but has had a very positive trend in the first part of 2025. We anticipate this trend will continue.
Legacy at Savannah Quarters is a one hundred four (104) unit assisted living and memory care community in Pooler, GA. Legacy at Savannah Quarters experienced 90% or higher occupancy for the duration of 2024 to current. Occupancy continues to thrive as a result of effective sales and marketing
efforts and the support of excellent leadership that oversee the programming, activities and culinary within the community.
Savannah Quarters experienced an increase of $54,000 average monthly NOI from Q1 2024 to Q1 2025. Total revenue grew by 13.6% during that same period outpacing the 2.9% increase in expenses contributing to the NOI growth.
Whether assisted living or memory care, at Savannah Quarters, seniors are encouraged to live life with freedom, purpose, and vitality. We have attached a video testimonial of the investment community below:
The Senior Living Fund investment team is comprised of industry, securities, financial, and investment experts, as well as support personnel, based primarily in the Kansas City metropolitan area.
Dan has 30+ years of business experience, including 25+ years as an executive and principal in real estate, capital placement, business development and management. Dan has 10+ years of experience in a business consulting and management role for Accenture. Dan also has 10+ years of experience in the senior housing sector.
Mark brings strong operations management skills to the SLF team through his 30+ years of experience in business consulting, real estate investment and development, financial analysis and management. Mark currently serves as Chief Operations Officer for Senior Living Fund, LLC and its affiliated entities.
Rick brings over 30 years of financial management experience, mostly focused on financial services industry. Rick oversees all of the accounting operations including financial reporting, cash planning, and managing external audit relationships and the Funds tax reporting.
Senior Living Fund has five (5) investment offerings for accredited investors: