This year’s ASHA 50 survey was conducted as of June 1, 2011, with several large industry transactions reflected in this year’s rankings. The industry continues to hold its own in a challenging environment where the single-family housing market remains depressed and the economic recovery is anything but robust. Construction levels of new senior apartments, independent living and assisted living residences, Alzheimer’s/memory care facilities, and continuing care retirement communities (CCRCs) remain very modest nationally, and most of the companies represented in this year’s ASHA 50 rankings are well known to those who follow the industry.
For more detailed operating metrics on the seniors housing industry, construction trend analysis, and other practical resources about private pay seniors housing, please visit the secure ASHA bookstore at www.seniorshousing.org.
The total number of units owned by the 50 largest seniors housing owners (450,065 units) increased by 7% from the previous year’s ASHA 50 rankings. More significant increases from 2010 to 2011 are also noted when examining the holdings of the largest 10 and 25 owners, respectively (21% and 9%). Publicly traded companies represented around a quarter of the largest 50 owners, but accounted for nearly half (214,336 units) of the total units reported.
The largest publicly traded owners include: Ventas Healthcare Properties, Inc. (58,469 units), HCP, Inc. (36,418 units), and Health Care REIT, Inc. (31,407 units). Ventas increased its seniors housing portfolio by 24,394 units when it closed on its $7.4 billion stock-for-stock transaction with Nationwide Health Properties this past summer. Earlier in the year, Ventas had acquired 118 seniors housing communities (more than 12,000 units) owned by Atria Senior Living Group at an acquisition cost of $3.1 billion.
Health Care REIT, Inc. has also grown substantially, increasing its seniors housing portfolio by 79% with $6.9 billion in acquisitions and RIDEA partnerships with several respected regional operators including: Merrill Gardens, Senior Star Living, Silverado Senior Living, Benchmark Senior Living and Brandywine Senior Living. Other large publicly traded companies with ownership of more than 15,000 units include: Brookdale Senior Living, Inc. (20,891 units), Senior Housing Properties Trust (19,006 units), and Emeritus Senior Living (15,493 units).
The non-publicly-traded, for-profit companies that own more than 7,500 units of seniors housing include: Boston Capital (30,638 units), Holiday Retirement (29,636 units), Senior Lifestyle Corporation (9,217 units), and MCA Housing Partners (8,759 units).
The Evangelical Lutheran Good Samaritan Society is the largest not-for-profit ASHA 50 owner with 16,289 units, followed by ACTS Retirement-Life Communities, Inc. (8,278 units), and Presbyterian Homes & Services (7,066 units).
The minimum threshold for ranking on the 2011 ASHA 50 list for owners was 2,649 units.
The total number of units managed by the largest 50 managers decreased by 1.5% from 2010 to 2011, from 464,053 units to 457,326 units. The management portfolios of the largest 10 managers also decreased by 1.5%, while the managed portfolios of the largest 25 operators decreased by 2.5% from the previous year.
Publicly traded companies represented 12% of the top ASHA 50 managers, but accounted for over one-third (160,132 units) of the reported units managed. The largest publicly traded managers include: Brookdale Senior Living, Inc. (51,166 units), Emeritus Senior Living (42,600 units), Sunrise Senior Living, Inc. (27,330 units), Five Star Quality Care (20,792 units), Assisted Living Concepts, Inc. (9,305 units), and Capital Senior Living Corporation (8,939 units).
For the third consecutive year, Brookdale Senior Living, Inc. was the largest manager, with 51,166 units.* Emeritus Senior Living increased its managed portfolio by 55% and is now the second largest manager with 42,600 units. Holiday Retirement remains the third largest manager (33,006 units), and LCS moved up one and is now the fourth largest manager with 29,365 units.
Integral Senior Living posted the greatest percentage increase in units managed between 2010 and 2011 (77%), adding 2,130 units to its managed portfolio. Emeritus Senior Living increased its managed portfolio by 55% adding just over 15,000 units in one year.
The non-publicly traded, for-profit companies that manage more than 7,500 units include: Holiday Retirement (33,006 units), LCS (29,365 units), Erickson Living Management (19,082 units), Horizon Bay Retirement Living (16,219), Atria Senior Living, Inc. (14,465 units), Senior Lifestyle Corporation (10,716 units), and Merrill Gardens (7,681 units). Senior Care, Inc. will also manage more than 7,500 units with the acquisition of 32 assisted living communities from Hearthstone Senior Services, announced in July.
The Evangelical Lutheran Good Samaritan Society remains the largest not-for-profit manager, with a managed portfolio of 16,656 units. Other large not-for-profit managers include: ACTS Retirement-Life Communities, Inc. (8,278 units), Presbyterian Homes & Services (7,173 units), and Covenant Retirement Communities, Inc. (4,672 units).
To view the entire ASHA 50 supplement and rankings, go here.