OVERVIEW

It is fair to say that the past couple of years have been challenging for most owners and managers of market rate seniors housing. But despite the worst economic downturn since the Great Depression, the seniors housing sector has performed solidly, raising its profile among investor groups traditionally inclined toward more established real estate property types.

Industry data suggests that “need-driven” seniors housing, such as assisted living and memory care, has fared somewhat better during the economic downturn than more “discretionary-driven” housing, such as independent living.

With modest construction activity taking place and limited transactional activity recorded over the past 12 months, the ASHA 50 rankings will look familiar to industry insiders. For more detailed industry operating metrics, construction trend analysis, and other timely resources about private pay seniors housing, please visit the secure, convenient, and redesigned ASHA bookstore at www.seniorshousing.org.

ASHA 50 SURVEY HIGHLIGHTS

Ownership

The total number of units owned by the 50 largest seniors housing owners (421,277 units) declined approximately 4% from the previous year's ASHA 50 rankings.

More significant decreases from 2009 to 2010 are also noted when examining the holdings of the largest 10 and 25 owners, respectively (-10%) and (-7%).

Publicly traded companies represented just under one-quarter of the largest 50 owners, but accounted for over 40 percent (186,401 units) of the total units reported.

The largest publicly traded owners include: HCP, Inc. (31,029 units), Nationwide Health Properties (23,759 units), Ventas Healthcare Properties (22,147 units), Brookdale Senior Living (20,258 units), Senior Housing Properties Trust (19,375 units), Health Care REIT (17,519 units), and Emeritus Senior Living (15,181 units).

For the first time, HCP, Inc. moved into the top slot as the largest owner, with 31,029 units owned in 257 properties. Holiday Retirement, which had been the largest owner for nearly the entire 17-year history of the ASHA 50, is now the second largest owner, with 30,512 units in 256 properties.

Among the largest owners, Emeritus Senior Living had the greatest percentage increase (13.7%) in units owned between 2009 and 2010 (adding 2,086 units).

Other owners posting notable increases in units owned over last year include: Assisted Living Concepts (2,849 units added), Lytle Enterprises (751 units added), and Bonaventure Senior Living (660 units added).

Non-publicly traded, for-profit companies that own more than 7,500 units of seniors housing include: Holiday Retirement (30,512 units), Boston Capital (29,862 units), Atria Senior Living Group (12,488 units), Senior Lifestyle Corporation (9,016 units), and MCA Housing Partners (8,759 units).

The Evangelical Lutheran Good Samaritan Society is the largest not-for-profit ASHA 50 owner with 12,664 units in 47 properties, followed by ACTS Retirement-Life Communities (7,204 units in 19 properties), and Presbyterian Homes & Services (6,510 units in 36 properties).

Blackstone Group, with its winning bid for 149 seniors housing properties previously controlled by Sunwest Management, became the nation's 12th largest seniors housing owner (12,488 units).

The minimum threshold for ranking on the 2010 ASHA 50 list for owners was 2,472 units.

Managers

The total number of units managed by the 50 largest managers increased two percent from 2009 to 2010, from 456,029 units to 464,053 units. Despite the overall increase in total units managed, the management portfolios of the largest 10 managers actually declined by one percent from 2009.

Publicly traded companies represented 12% of the top ASHA 50 managers, but accounted for nearly one-third (146,782 units) of the reported units managed.

The largest publicly traded managers include: Brookdale Senior Living, Inc. (51,877 units), Sunrise Senior Living, Inc. (31,094 units), Emeritus Senior Living (27,517 units), Five Star Quality Care (18,638 units), Assisted Living Concepts (9,280 units), and Capital Senior Living Corporation (8,376 units).

For the second consecutive year, Brookdale Senior Living was the largest manager, with 51,877 units in 564 properties. Sunrise Senior Living, which was the second largest manager in 2009, dropped to fourth place with a managed portfolio of 31,094 units. Holiday Retirement remains the third largest owner (32,563 units), and Life Care Services moved up one and is now the fifth largest manager with 27,540 units in 98 communities.

Senior Resource Group posted the greatest percentage increase in units managed between 2009 and 2010 (25%), adding nearly 2,000 units to its managed portfolio. Other managers posting notable increases in managed units include: Aegis Senior Living (685 units added), Hawthorn Retirement Group (895 units added), and Christian Homes, Inc. (601 units added).

Non-publicly traded, for-profit companies that manage more than 7,500 units include: Professional Community Management (34,408 units), Holiday Retirement (32,563 units), Life Care Services (27,540 units), Erickson Living Management (20,963 units), Horizon Bay Retirement Living (15,549 units), Atria Senior Living Group (14,441 units), Senior Lifestyle Corporation (9,500 units), Senior Resource Group (7,962 units), and Merrill Gardens (7,681 units).

The Evangelical Lutheran Good Samaritan Society is the largest not-for-profit manager, with a managed portfolio comprised of 12,664 units in 47 properties. Other large not-for-profit managers include: ACTS-Retirement-Life Communities (7,204 units), Presbyterian Homes & Services (6,821 units), and Covenant Retirement Communities (4,755 units).

The minimum threshold for inclusion on the 2010 ASHA 50 list for managers was 2,550 units.

ASHA 50 PROFILE 2009

Portfolio Size:
No. of Units Owned 421,277
No. of Units Managed 464,053
Minimum Entry Threshold:
No. of Units Owned 2,472
No. of Units Managed 2,550