Healthcare Vital Signs

It is relatively difficult to provide a benchmark of the evolution of the yields for the retirement home market across European countries since major differences exist. Indeed, we observe significant differences regarding the lease duration, the type of the lease (double net or triple net for example) and the indexation of the rents. All these elements have an impact on the yield, which makes comparisons somehow less relevant. The most aggressive prime yields are to be found in France, where yields are to be found in the UK where they reached sub 4.00% in 2018. PRIME YIELDS EUROPEAN PRIME YIELDS IN THE CARE HOME SECTOR Source: Cushman & Wakefield 4,00% 5,00% 6,00% 7,00% 8,00% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Italy Spain Belgium France UK Germany DEPENDENCY RATIO Measure showing the number of dependents, over the age of 65, to the total population, aged 15 to 64. It is also referred to as the ‘total dependency ratio.’ RETIREMENT HOME (EHPAD) In French referred to as Etablissement d’Hébergement pour Personnes Agées Dépendantes or EHPAD. Includes nursing and residential care. DEFINITIONS AUTHORISED BEDS AND PLACES Describes the beds and places for which the establishment has an administrative authorisation. EQUIPMENT RATE Ration describing the total number of nursing homes beds to the total population aged 80 and above. 20 | CUSHMAN & WAKEFIELD