WestEnd Capital Management, LLC on Janus Living, Inc.

WestEnd sees Janus Living as a direct way to participate in attractive long-term senior-housing fundamentals. Because the company generates operating income directly from resident rents and service fees, it captures the upside from higher occupancy and rents rather than receiving only fixed lease payments. Demand is supported by rapid growth in the population over age 85 while new senior-housing construction remains below historical levels. An under-levered balance sheet provides capacity for accretive acquisitions, and tight industry supply should support occupancy, rental growth and margins. Recent revenue, same-store NOI and AFFO performance provided evidence that the operating model was gaining traction. WestEnd also views need-driven senior housing as relatively defensive compared with more discretionary real-estate demand.