Assisted Living & Senior Housing Financing: EBITDAR, Census & Operator Risk
Quick answer: Senior housing and assisted living are operating businesses as much as real estate, so lenders underwrite the operator and the cash flow. Key metrics: EBITDAR (earnings before interest, taxes, depreciation, amortization, and rent), census/occupancy, lease or debt coverage, the operator’s track record, acuity and payor mix, and regulatory standing. Leverage is conservative and […]
