Executive Reporting
How can senior housing REITs and institutional owners verify the occupancy and NOI figures reported by operating partners?
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Direct answer
Ask for three things alongside the figures: the written definition used, the source records behind a sample of communities and months, and the approval trail showing who signed off and what was adjusted. Then trace that sample from reported occupancy and NOI to rent roll, census, billing and the GL. Verification is about method, not only arithmetic.
The executive view
An owner rarely has the time to re-audit every partner. The efficient approach is to verify the operator’s process once, sample periodically, and require that any later change to a reported figure arrive with its reason and approval.
Why this happens
Occupancy and NOI can each be calculated several defensible ways, so two partners can report correctly and still not be comparable.
Adjustments made after the fact — reclasses, late move-ins, concession corrections — change reported figures without always being flagged to the owner.
Hypothetical example: owner sample of one partner-month
Reported occupancy
90.8%
Partner definition: billed units
Rent roll trace
90.8%
Matches billed units
Reported NOI
$1.21M
Management fee below NOI
Owner definition
$1.15M
Fee above NOI per agreement; mapping difference recorded
- Evidence
- Disagreement
- Authority
- Operator-Controlled Operating Record
- Intelligence
- Execution
Illustrative figures. Coherence before Intelligence.
Hypothetical figures. Occupancy verified cleanly; NOI was arithmetically right but used a different fee treatment from the owner agreement.
The governance question
A defensible executive number has an approved definition, a known source authority, a recorded resolution of any disagreement, and lineage back to source. Disputed numbers should be shown as disputed, not smoothed.
Evidence → Disagreement → Authority → Operator-Controlled Operating Record → SeniorCRE Intelligence → Execution
What good operating infrastructure should do
- Governance checks before a number reaches an executive view.
- Visible dispute status for unresolved numbers.
- Drill-through from a KPI to its original source values.
- An audit trail of determinations behind each KPI.
- Clear labeling of calculated versus governed numbers.
SeniorCRE perspective
SeniorCRE is designed so an executive can open any governing number and see its definition, sources, disagreements and the determination that settled them. The aim is a defensible operating record, not a more attractive dashboard. Status: the Operator-Controlled Operating Record is designed and not yet implemented in any community. Current capability states and production-entry gates are published in the Evidence Record at the Trust Center; nothing here should be read as a production result.