HilltopSecurities affirms its stable outlook on the senior living sector which was upgraded in 2025 to stable from cautionary. The maintenance of our stable outlook reflects sustained increases in occupancy exceeding pre-COVID levels, higher monthly community revenue, and stabilized expense pressures, including labor and food costs. This outlook is especially relevant given the 65% growth in sector debt issuance in 2025 adding to the almost 60% growth in senior living issuance in 2024, a trend that is expected to continue into 2026. Our stable outlook also reflects the 72% reduction in year over year senior living related defaults as the sector continues to benefit from revenue growth and expense stabilization.

Download the full article