The 2009 ASHA 50 rankings appear for the 16th consecutive year in National Real Estate Investor, highlighting trends and activity within the market rate seniors housing space. While the holdings of several owners and managers increased notably, the vast majority of companies appearing on the ASHA lists have been ranked in previous years.
Although public companies continue to be among the largest owners and managers of seniors housing, private, for-profit companies account for the preponderance of the ASHA rankings, while not-for-profits maintain a vital presence on both the owners and managers list.
STATISTICAL HIGHLIGHTS - SENIORS HOUSING OWNERS
Five Largest Owners Ranked by Number of Units
Salem, OR based Holiday Retirement is the largest owner of seniors housing, as it has been for 15 of the past 16 years, with 34,657 units and 296 properties. It also ranks among the top five seniors housing managers. HCP, Inc., a publicly traded REIT, is the second largest owner, with 31,419 units and 264 properties. Boston Capital is the third largest owner, the same rank as last year, with 30,249 units and 595 properties. Sunrise Senior Living, Inc. ranks as the fourth largest owner with ownership interest in 26,782 units and 244 properties. Sunrise also ranks among the largest managers in the country. Nationwide Health Properties, Inc., a publicly traded REIT, is the fifth largest owner with a portfolio comprised of 23,368 units and 285 properties.
Owners with 10,000+ Units
Other seniors housing owners with 10,000+ units include: Ventas Healthcare Properties, Inc. (6th largest, 23,204 units), Erickson Retirement Communities, LLC (7th largest, 20,985 units), Brookdale Senior Living, Inc. (8th largest, 20,861 units), Senior Housing Properties Trust (9th largest, 19,996 units), Health Care REIT, Inc. (10th largest, 16,853 units), Emeritus Senior Living (11th largest, 13,095 units), and Atria Senior Living Group (12th largest, 13,000 units).
Owners with Largest Portfolio Growth
Among owners ranked the past two years, Westminster Communities of Florida grew the most (34 percent) as the result of the acquisition of seven properties. Other owners posting considerable growth include: Hawthorn Retirement Group, LLC (28 percent growth) and Emeritus Senior Living (20 percent growth).
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. (2nd), Sunrise Senior Living, Inc. (4th), Nationwide Health Properties, Inc. (5th), Ventas Healthcare Properties, Inc. (6th), Brookdale Senior Living, Inc. (8th), Senior Housing Properties Trust (9th), and Health Care REIT, Inc. (10th).
For-Profit, Privately Held Owners
For-profit, privately held entities comprise around half (48%) of the 2009 ASHA 50 owners list, two percent more than last year. They include: Holiday Retirement (1st, which is owned by a public entity, Fortress, but not traded publicly), Boston Capital (3rd), Atria Senior Living Group (12th), Senior Lifestyle Corporation (13th), MacFarlane Costa Housing Partners, LLC (14th), Merrill Gardens, LLC (18th), First Centrum, LLC (21st), Classic Residence by Hyatt (22nd), USA Properties Fund, Inc. (23rd), Walton Street Capital (24th), Senior Care, Inc. (28th), Benchmark Assisted Living (29th), Hawthorn Retirement Group, LLC (33rd), Bonaventure Senior Living (formerly called Mountain West Retirement Retirement Corporation) (34th), Lytle Enterprise, LLC (36th), American House Senior Living Residences (37th), Kisco Senior Living, LLC (39th), Prime Care Properties, LLC (45th), Belmont Village Senior Living (46th), Life Care Services, LLC (47th), Justus Rental Properties, Inc. (48th), Vintage Senior Living (49th), and Starwood Capital Group Global, LLC (50th).
Not-for-Profit Organizations
Twenty-eight percent of the ASHA 50 owners (down two percent from 2008) are not-for-profit organizations including: Erickson Retirement Communities, LLC (7th), ACTS Retirement-Life Communities, Inc. (15th), The Evangelical Lutheran Good Samaritan Society (17th), Presbyterian Homes & Services (19th), Covenant Retirement Communities (26th), Westminster Communities of Florida (27th), Retirement Housing Foundation (31st), Life Care Retirement Communities, Inc. (32nd), Volunteers of America (38th), Ohio Presbyterian Retirement Services (40th), Asbury Communities, Inc. (41st), Christian Homes, Inc. (42nd), The Kendal Corporation (43rd), and Front Porch (44th).
Ownership Growth Profile
In the aggregate, the holdings of the largest 25 owners increased by seven percent from 338,231 units to 361,103 units. The portfolio holdings of the largest 10 owners increased by six percent between 2008 and 2009, from 233,845 units to 248,374 units. The average (mean) ownership portfolio size for ASHA 50 owners is 8,812 units, up from 8,320 units in 2008. In total, the 50 largest owners have interests in 440,624 units, up from 416,023 units in 2008.
STATISTICAL HIGHLIGHTS - SENIORS HOUSING MANAGERS
Five Largest Managers Ranked by Number of Units
For the fourth consecutive year, Brookdale Senior Living, Inc. is the largest manager in the United States with 51,888 units and 547 properties. Sunrise Senior Living, Inc. is the second largest with 40,160 units and 371 properties under management, followed by Holiday Retirement (36,706 units and 313 properties). Professional Community Management is the fourth largest manager (31,215 units and 30 properties), with Emeritus Senior Living rounding out the top five (27,234 units and 309 properties).
Managers with 10,000+ Units
Other seniors housing managers with 10,000+ units include: Life Care Services, LLC (6th largest, 22,746 units), Erickson Retirement Communities (7th largest, 20,985 units), Five Star Quality Care, Inc. (8th largest, 17,846 units), Atria Senior Living Group (9th largest, 14,915 units), and Horizon Bay Retirement Living (10th largest, 13,054 units).
Managers with Largest Portfolio Growth
Senior Resource Group, LLC increased their managed portfolio by 60% between 2008 and 2009, moving from 46th largest to 20th largest manager. Emeritus Senior Living jumped six spots to become the fifth largest manager, by expanding their managed portfolio by 57%. A 34% increase in the number of units managed vaulted Westminster Communities of Florida to the 25th largest manager. Good Neighbor Care moved up 13 positions to become the 37th largest manager with 27% more units under management in 2009 than in 2008.
MANAGERS BY OWNERSHIP TYPE
Publicly Held Companies
Publicly held managers comprise 12% of the managers on the ASHA 50 list, but collectively manage 34% of the total units managed by the largest 50 managers. They include: Brookdale Senior Living, Inc. (1st), Sunrise Senior Living, Inc. (2nd), Emeritus Senior Living (5th), Five Star Quality Care, Inc. (8th), Assisted Living Concepts, Inc. (12th), and Capital Senior Living Corporation (13th).
For-Profit, Privately Held Companies
Fifty-six percent of this year's ASHA 50 managers are privately held, for-profit companies, down from 58% in 2008. These companies include: Holiday Retirement (3rd), Professional Community Management (4th), Life Care Services, LLC (6th), Atria Senior Living Group (9th), Horizon Bay Retirement Living (10th), Senior Lifestyle Corporation (11th), Merrill Gardens, LLC (15th), CRSA Management, LLC (18th), Classic Residence by Hyatt (19th), Senior Resource Group, LLC (20th), One Eighty/Leisure Care, LLC (21st), USA Multifamily Management, Inc. (22nd), First Centrum, LLC (23rd), Senior Care, Inc. (26th), Benchmark Assisted Living (27th), Hearthstone Senior Services (28th), Continuing Care Management, LLC (30th), Hawthorn Retirement Group, LLC (32nd), Bonaventure Senior Living (formerly Mountain West Retirement Corporation) (33rd), American House Senior Living Residences (35th), Grace Management, Inc. (36th), Good Neighbor Care (37th), Kisco Senior Living (41st), Vintage Senior Living (43rd), Belmont Village Senior Living (46th), George M. Leader Family Corporation (48th), Justus Rental Properties, Inc. (49th), and Aegis Senior Communities, LLC (50th).
Not-For-Profit Organizations
Not-for-profit organizations comprise 32% of the managers on this year's ASHA 50 list, up from 30% in 2008. They include: Erickson Retirement Communities (7th), The Evangelical Lutheran Good Samaritan Society (14th), ACTS Retirement-Life Communities, Inc. (16th), Presbyterian Homes & Services, Inc. (17th), Covenant Retirement Communities (24th), Westminster Communities of Florida (25th), Retirement Housing Foundation (29th), PHS Senior Living (31st), Life Care Retirement Communities, Inc. (34th), Pacific Retirement Services, Inc. (38th), Volunteers of America (39th), Asbury Communities, Inc. (40th), Front Porch Communities (42nd), Ohio Presbyterian Retirement Services (44th), Christian Homes, Inc. (45th), and The Kendal Corporation (47th).
Management Growth Profile
In the aggregate, the holdings of the largest 25 managers were virtually unchanged from 378,071 units in 2008 to 377,086 units in 2009. Growth among the largest 10 managers increased slightly (0.02%) from 272,216 units in 2008 to 276,749 units in 2009. In total, the largest 50 managers manage 456,029 units, down from 456,231 the previous year. The average management portfolio size of the ASHA 50 managers is 9,121 units and the minimum threshold for inclusion in this year's manager rankings was 2,419 units, 135 units more than in 2008.
| Portfolio Size: | |
|---|---|
| No. of Units Owned | 440,624 |
| No. of Units Managed | 456,029 |
| Minimum Entry Threshold: | |
| No. of Units Owned | 2,454 |
| No. of Units Managed | 2,419 |