b'ADVERTORIAL2021 Outlook: Redevelopment and ConsolidationSeniors housing represents a vital, growing sector in the Canadian economy, with a great deal of potential in the coming years.Over the next two decades, the 75+ yearand deferrals of residents moving in.equipment and labour. We also anticipate segment of the Canadian population isCOVID-19 has understandably increased thean acceleration of the consolidation trend, expected to grow over 110%, compared tocost structure of the sector in the near term.given the capacity of larger firms to growth of just under 20% for the wholeWeve noted that the larger, well capitalizedsupport the higher costs associated with population. As well, Statistics Canadasfirms have been better able to manage thatconstruction of safer designs, technological most recent data has shown that thecost pressure. That said, we expect costsimprovements, and testing for residents life expectancy of people aged 65 andto normalize and be fully passed along toand visitors. We also expect to see more over is increasing. With waitlists growingresidents within 24 months. gated communities with on-site amenities. and government-funded constructionOn the long-term care front, provincialIn the long term, the increase in the seniors and investment, the opportunities in thegovernments have stayed committedpopulation over the next 10-20 years sector are impressive. to the sector by giving operators fullwill result in a corresponding growth in Among the key trends, larger players areoccupancy protection and reimbursementdemand, which will provide underpinnings choosing to divest smaller properties infor all cost associated with prevention,for the sector as a whole.secondary markets; at the same time,containment, screening, and testing from theyre building for scale in larger urbanwave one of the pandemic and additional centres. Operators are also leavingfunding to help manage the second waveLets connectexisting business lines to move towardsof COVID-19. either long-term care or retirement. Operators expect an uptick in occupancy,Sanjay Arora, These trends have led to significant M&Agiven the number of room holds andManaging Director & Regional Market Leader, Business activity over the last five years. Whileinquiries they have, but seniors areProperty Finance, Central weve seen a dip over the last year givenchoosing to wait for the ability to haveand Eastern Canadathe pandemic, we expect that this trendvisitors. And while occupancies in the416-436-1915will resume once the situation returns tosector have fallen on average by 10-15%sanjay.arora@bmo.comsomething closer to normal.in 2020, we expect this to stabilize andStephen Vermette, Of note regarding the pandemic, thetrend higher by the end of 2021. Managing Director & Regional sector has generally managed through theIn the short-to-medium term, wereMarket Leader, Business Property significant and broad challenges of the pastexpecting the pandemics fallout to lead toFinance, Western Canadayear. Our clients in the space did see lowerincreased regulation and higher operating604-319-0479stephen.vermette@bmo.com occupancy levels resulting from lockdownscosts related to personal protective'