Welltower’s Blockbuster Amica Deal Shows How Reits Are Turning Up Heat In Canada

On Sunday, Welltower (NYSE: WELL) announced it is acquiring a portfolio of communities managed by Amica Senior Lifestyles in Canada for a deal equivalent to almost $3.2 billion USD.

Welltower is with the deal gaining 38 “ultra luxury” communities and nine development parcels along with a minority ownership interest in its new operating partner. But more than that, the company is ramping up its plans in Canada in a big way with other operators, including Cogir, in a trend that I think the industry will see more of in 2025 and beyond.

While accessing Canadian markets is out of reach for many U.S.-based senior living companies, REITs like Weltower and Ventas (NYSE: VTR) have the scale and capital with which to make big plays north of the U.S. border.

By investing in Canadian operators and properties, companies like Ventas and Welltower are diversifying their portfolios beyond U.S. borders and gaining insight into models that could inform operations and innovations in this country. Their Canadian partners also could ultimately expand in the United States; already, Cogir’s U.S. arm is large and growing.

Canadian markets also carry similar demographics and supply trends as U.S.-based markets, with outsized growth of the 80-plus population through 2030 but relatively low levels of newly built communities.

Welltower and Ventas already both have dozens of communities in Canada apiece, but given what I have heard and seen as of late, I think they are only getting started expanding in the country.

Welltower CEO Shankh Mitra believes Amica manages “the best senior living portfolio that I’m aware of in the world.” He added that the sale from Ontario Teachers’ Pension Plan is part of a larger trend “toward large Canadian pension funds to sell private equity and private real estate assets,” telling me there will likely be more opportunities to upsize in Canada ahead.

In this members-only SHN+ Update, I examine recent comments from REIT executives and offer the following takeaways:

– What holdings Welltower and Ventas have amassed in Canada in recent years

– Why competition for deals will only accelerate north of the U.S. border

– Demographic trends propelling Canadian growth strategies forward

Inside Welltower, Ventas growth in Canada

Ventas and Welltower are not strangers to Canada. Both companies have had senior living holdings there for years and have competed with each other to do deals north of the border. In 2025, I believe those companies will continue with those plans and accelerate them further.

Before the Amica deal, Welltower had 134 properties in Canada, according to its 4Q24 supplemental disclosure. By comparison, Welltower’s largest peer REIT, Ventas, had 84 communities in Canada as of December 31.

With its Amica acquisition, Welltower is following a blueprint it has taken before. In late 2023, the company expanded its relationship with Cogir after closing a 12-property, $885 million CAD transaction. Specifically, the company said it acquired the 12 lower-acuity communities under Cogir’s Jazz brand at a discount to replacement cost.

As of the end of 2024, Welltower and Cogir had grown the portfolio to an average of 98% occupancy, pushing its NOI 7.1% greater than underwriting. Occupancy at the end of last year also was 90 basis points higher and revenue per occupied room (RevPOR) was 4.2% greater than what Welltower assumed it would be at that time.

Amica’s higher-acuity properties in Toronto, Vancouver, and Victoria, are “a natural complement in Canada to the lower acuity model of Cogir,” Welltower noted in its most recent business update.

Ventas also sees Canada as an important part of its overall senior living holdings. Among the company’s star performers north of the U.S. border – and overall – is Le Groupe Maurice, which as of late last year had almost reached 100% occupancy for its 37-community portfolio owned by Ventas.

A couple of weeks ago, I met with Ventas CIO and EVP of Senior Housing Justin Hutchens, who told me that Le Groupe Maurice and its communities exemplify the “future” of senior living with communities equipped with a range of amenities including golf simulators, bocce ball courts, large fitness centers, outdoor gardens and bowling alleys. The communities also have ground-floor space for restaurants, grocery stores, salons and other kinds of businesses that older adults of today frequented before moving in.

“When you walk in, you feel an instant energy,” Hutchens told me.

The relatively modest size of both companies’ portfolios in Canada tells me there’s likely more room for both to expand there, if the opportunity is right – and there may already be deals underway that could close in the future.

Mitra and Welltower management spoke about the REIT and its plans during a recent meeting at the Citi 2025 Global Property CEO Conference this week. One detail that caught my attention was the fact that Welltower’s leaders said they had worked on the Amica deal for “10-plus” years, with the recent acquisition the culmination of a long waiting period.

“It is the highest-quality portfolio, and it comes with massive growth prospects, from leasing up seven buildings that are newly delivered to acquiring seven more buildings that are in construction as they are completed without taking construction or development risk,” said Welltower Co-President and Chief Investment Officer Nikhil Chaudhri during the company’s presentation at Citi on March 4.

Mitra said the company’s leaders ultimately closed the deal during a six-hour negotiation at the house of Amica CEO Jens Cermak.

“I’m a handshake person. I’ve never walked away from any deals I’ve ever said I’m going to do,” Mitra added.

That anecdote, coupled with what I’ve heard recent leaders say about Canada, tell me that they see the country full of opportunities worth waiting for – and I would not be surprised if Ventas or Welltower are working on other deals up north, waiting in the wings to pounce on them when the opportunity is right.

Of particular interest to me is the fact that Canadian operators have approaches that are different than those typical in the United States, and more cross-pollination of ideas and practices between the two countries could spur innovation.

Consider PARC Retirement Living, which made the SHN “Providers to Watch” feature in 2021. The company’s approach to eco-friendly features, universal design and partnerships involving student housing are among the elements that make it stand out.

And then there’s Optima Living, a Canada-based operator that has been honored in SHN’s Aspect Awards program for its sales and marketing initiatives. Optima has leveraged amenities such as pickleball courts and pubs to create themed events that draw younger prospects to its communities.

“It’s about how we leverage engagement and we’re creating that purpose,” Co-Founder and Principal Karim Kassam said at the 2025 SHN Sales & Marketing Conference. “Now you have a pool of qualified leads that you don’t have to invest marketing dollars on because you’re creating that interaction right there.”

Canada ripe for more senior living growth

Even a cursory look at demographics in Canada shows that the country carries a similar demand upside as the U.S. For this reason alone, I think it will remain a target in which to deploy capital and make new investments in the years ahead.

Weighted average senior living occupancy in Canada has grown from a low of 71% in the first quarter of 2021 to about 88% in 2024, with increasing leasing velocity and positive net absorption in most markets, according to a September 2024 Cushman & Wakefield analysis of senior housing trends in 17 Canadian markets.

At the same time, rent growth is accelerating, with average increases in the 3% to 5% range in 2024 compared to 2023, according to the report.

As of 2023, there were about 7.6 million adults in Canada aged 65 and older, accounting for about one-fifth of all people there, according to Statistics Canada, the country’s official statistics office. By 2030, people aged 65 and older could represent as much as 23.4% of the total population in the country.

At the same time, annual deliveries of new senior housing communities in Canada dipped in 2023 and 2024, according to Cushman and Wakefield data cited by Welltower.

All of this fits into the stated goals of REITs like Ventas and Welltower, which have sought as of late to buy high-performing senior living portfolios at a discount to replacement cost.

Putting the pieces together, both Welltower and Ventas have stated they see a lot of promise in their current Canadian holdings. And with demographics trending in the right direction, aligning with those companies’ acquisition strategies, I believe we will see more expansion north of the border ahead.

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