The 2008 ASHA 50 rankings appear for the 15th consecutive year in National Real Estate Investor and continue to highlight trends taking place within the market-rate seniors housing business. With this year's rankings, the holdings of several owners and managers have increased markedly, although only 12% of companies appearing on the ASHA 50 lists are ranked for the first time.

While all of the top five owners were in the top five a year ago, for the first time since the survey was started, someone other than Holiday Retirement is the largest owner of seniors housing in the U.S. All but one of the largest five managers was also ranked in the top five last year.

Although public companies tend to be among the largest owners and managers, private, for-profit companies account for the bulk of the largest owners and managers, while not-for-profits maintain an important presence on both ASHA 50 lists.

STATIStICAL HIGHLIGHTS — SENIORS HOUSING OWNERS

Five Largest Owners
Ranked by Number of Units

HCP, Inc., a publicly traded REIT, is the largest owner of seniors housing in the U.S., with 31,875 units and 269 properties. For the first time in 15 years, Holiday Retirement does not rank as the largest owner, falling to the second slot with 30,777 units and 261 properties. It also ranks among the top five seniors housing managers. Boston Capital is the third largest owner, the same rank as last year, with 28,517 units and 590 properties. Sunrise Senior Living, Inc. ranks as the fourth largest owner with 25,904 units and 237 properties. Sunrise also ranks among the largest managers in the country. Ventas Healthcare Properties, a publicly traded REIT, is the fifth largest owner with a portfolio comprised of 24,110 units and 253 properties.

Owners with 10,000+ Units

Other seniors housing owners with 10,000+ units include: Nationwide Health Properties (6th largest, 22,573), Senior Housing Properties Trust (7th largest, 19,440), Brookdale Senior Living, Inc. (8th largest, 18,777), Health Care REIT, Inc. (9th largest, 18,303), Atria Senior Living Group (10th largest, 13,569) and Emeritus Senior Living (11th largest, 10,518).

Ownership Growth Profile

Among owners ranked the past two years, Emeritus Senior Living grew the most (47%), nearly doubling the size of its owned portfolio. Emeritus' acquisition of Summerville Senior Living last September, plus other acquisition activity, fueled Emeritus' significant growth. Other owners posting considerable growth include: The Evangelical Lutheran Good Samaritan Society (11% growth), Presbyterian Homes & Services (7% growth), and Senior Housing Properties Trust (7% growth).

In the aggregate, the holdings of the largest 25 owners decreased by four percent from 354,101 units to 338,231units. The portfolio holdings of the largest 10 owners decreased by three percent between 2007 and 2008, from 240,755 units to 233, 845 units. The average ownership portfolio size for the ASHA 50 owners is 8,320 units, down from 8,808 units in 2007. In total, the 50 largest owners have interests in 416,023 units, down from 440,420 units in 2007.

OWNERS BY OWNERSHIP TYPE

Publicly Held Companies

Although publicly traded companies account for approximately one-quarter (24%) of all ASHA 50 owners, seven of the largest 10 owners are publicly traded companies, including HCP, Inc. (1st), Sunrise Senior Living, Inc. (4th), Ventas Healthcare Properties, Inc. (5th), Nationwide Health Properties, Inc. (6th), Senior Housing Properties Trust (7th) Brookdale Senior Living, Inc. (8th), and Health Care REIT, Inc. (9th).

For-Profit, Privately Held Owners

For-profit, privately held entities comprise slightly less than half (46%) of the 2008 ASHA 50 owners list, two percent down from last year. They include: Holiday Retirement (2nd, which is owned by a public entity, Fortress, but not traded publicly), Boston Capital (3rd), Atria Senior Living Group (10th), Senior Lifestyle Corporation (12th), MacFarlane Costa Housing Partners (13th), First Centrum, LLC (18th), Merrill Gardens, LLC (20th), Century Park Associates (22nd), Classic Residence by Hyatt (23rd), USA Properties Fund, Inc. (24th), American Senior Communities (27th), Benchmark Assisted Living (28th), Lytle Enterprises, LLC (30th), Senior Care, Inc. (32nd), Starwood Capital Group Global, LLC (35th), Mountain West Retirement Corporation (36th), American House Senior Living Residences (38th), Kisco Senior Living, LLC (41st), XL Management Company, LLC (43rd), Prime Care Properties, LLC (44th), Justus Rental Properties, Inc. (45th), George M. Leader Family Corp. (47th), and Belmont Village Senior Living (50th).

Not-For-Profit Organizations

Thirty percent of the ASHA 50 owners (up two percent from 2007) are not-for-profit organizations, including: Erickson Retirement Communities, LLC (14th), The Evangelical Lutheran Good Samaritan Society (15th), ACTS Retirement-Life Communities, Inc. (16th), Presbyterian Homes & Services (21st), Covenant Retirement Communities, Inc. (25th), Retirement Housing Foundation (29th), Life Care Retirement Communities, Inc. (33rd), Southern California Presbyterian Homes (34th), Westminster Commu-nities of Florida (37th), Cornerstone Affiliates (39th), Asbury Communities, Inc. (40th), The Kendal Corporation (42nd), Lutheran Senior Services (46th), Front Porch (48th), and Presbyterian Manors of Mid-America, Inc. (49th).

STATISTICAL HIGHLIGHTS — SENIORS HOUSING MANAGERS

Five Largest Managers
Ranked by Number of Units

For the third consecutive year, Brookdale Senior Living, Inc. is the largest manager in the United States with 51,857 units and 550 properties. Sunrise Senior Living, Inc. is the second largest manager, with 46,077 units and 400 properties under management, followed by Professional Community Management of California (31,644 units and 30 properties). Holiday Retirement is the fourth largest manager (30,777 units and 261 properties), with Sunwest Mangement rounding out the top five (23,158 units and 281 properties).

Managers with 10,000+ Units

Other seniors housing managers with 10,000+ units include: Life Care Services, LLC (6th largest, 22,346 units), Erickson Retirement Communities (7th largest, 19,693 units), Five Star Quality Care, Inc. (8th largest, 19,500 units), Atria Senior Living Group (9th largest, 15,149 units), Horizon Bay Senior Communities (10th largest, 12,015 units), and Emeritus Senior Living (11th largest, 11,702 units).

Managers with Largest Portfolio Growth

Erickson Retirement Communities increased their managed portfolio by 31% between 2007 and 2008, moving from the tenth to the seventh largest manager. Five Star Quality Care, Inc. jumped one spot to become the eighth largest manager, managing 29% more units in 2008 than in 2007. A 19% increase in the number of units managed vaulted Asbury Communities, Inc. to the 32nd largest manager, up from 41 last year. A similar percentage increase in number of units managed brought Life Care Retirement Communities to the 36th largest manager, up 10 from the previous year.

MANAGERS BY OWNERSHIP TYPE

Publicly Held Companies

Publicly held companies comprise 12% of the managers on the ASHA 50 list, but collectively manage 32% of the total units managed by the largest 50 managers. They include: Brookdale Senior Living, Inc. (1st), Sunrise Senior Living, Inc. (2nd), Five Star Quality Care, Inc. (8th), Emeritus Senior Living (11th), Assisted Living Concepts, Inc. (13th), and Capital Senior Living Corporation (15th).

For-Profit, Privately
Held Companies

Fifty-eight percent of this year's ASHA 50 managers are privately held, for-profit companies, down from 62% in 2007. These companies include: Professional Community Management of California, Inc. (3rd), Holiday Retirement (4th), Sunwest Management, Inc. (5th), Life Care Services, LLC (6th), Atria Senior Living Group (9th), Horizon Bay Senior Communities (10th), Senior Lifestyle Corporation (12th), Merrill Gardens, LLC (17th), American Senior Communities (19th), Classic Residence by Hyatt (20th), CRSA Management, LLC (21st), Century Park Associates (22nd), USA Multifamily Management, Inc. (23rd), Leisure Care, LLC (24th), First Centrum, LLC (25th), Benchmark Assisted Living (27th), Hearthstone Senior Services (29th), Continuing Care Management, LLC (30th), Senior Care, Inc. (31st), XL Management Company, LLC (33rd), American House Senior Living Residences (35th), Mountain West Retirement Corporation (37th), Kisco Senior Living, LLC (39th), George M. Leader Family Corporation (44th), Justus Rental Properties, Inc. (45th), Senior Resource Group, LLC (46th), Belmont Village Senior Living (47th), Brightview Senior Living (48th), and Good Neighbor Care Centers, LLC (50th)

Not-For-Profit Organizations

Not-for-profit organizations comprise 30% of the managers on this year's ASHA 50 list, up from 26% in 2007. They include: Erickson Retirement Communities (7th), The Evangelical Lutheran Good Samaritan Society (14th), ACTS Retirement-Life Communities, Inc. (16th), Presbyterian Homes & Services, Inc. (18th), Covenant Retirement Communities (26th), Retirement Housing Foundation (28th), Asbury Communities, Inc. (32nd), Southern California Presbyterian Homes (34th), Life Care Retirement Communities, Inc. (36th), Westminster Communities of Florida (38th), Pacific Retirement Services, Inc. (40th), Cornerstone Affiliates (41st), Lutheran Senior Services (42nd), The Kendal Corporation (43rd), and Front Porch (49th).

Management Growth Profile

In the aggregate, the holdings of the largest 25 managers increased by two percent from 368,851 units in 2007 to 378,071 units in 2008. Growth among the largest 10 managers increased by four percent, from 262,181 units in 2007 to 272,216 units in 2008. In total, the largest 50 managers manage 456,231 units, up from 450,494 units the previous year. The average management portfolio size of ASHA 50 managers is 9,125 units and the minimum threshold for inclusion in this year's manager rankings was 2,284 units, 145 fewer units than in 2007.

ASHA 50 PROFILE 2008

Portfolio Size:

No. of Units Owned 416,023
No. of Units Managed 456,231

Minimum Entry Threshold:

No. of Units Owned 2,205
No. of Units Managed 2,284