PricewaterhouseCoopers, the American
Seniors Housing Association (ASHA) adn the National Investment Center for the
Seniors Housing & Care Industries has just released its 48-page State of
Seniors Housing 1998 report.
The report includes detailed operating statistics and financial performance
measures on three main types of seniors housing: congregate residences
(independent living, some congregate services); assisted living (for frail
seniors who need assistance in some activities of daily living); and continuing
care retirement communities (CCRCs, i.e., independent and assisted living as
well as skilled nursing). All three major property types are performing well
on a variety of key operational and financial performance measures, with median
occupancy rates remaining above 95 percent.
For six years, the annual survey has summarized data collected from 298
properties located throughout the United States. Forty states are represented
in this year’s sample, with the top 10 states accounting for almost two-thirds
of all properties. The top three states, which together represent almost 40
percent of the units/beds in this year’s sample, are Florida (16.3 percent),
California (11.7 percent), and Texas (11.3 percent). Completing the list are
Arizona, Minnesota, Pennsylvania, Illinois, Ohio, Missouri, and Indiana. The
survey includes over 62,000 units of seniors housing.
Other information in the report includes summary statistics on community
type and unit mix, regional distributions of properties, occupancy, property
size, ownership status, resident turnover, per-unit financial results, and key
cost items.
Among the report’s highlights:
Median occupancy rates for the entire sample remain strong as illustrated by
rates in
excess of 95 percent for all property types. Median occupancy rates were
highest for congregate residents (97.5 percent), and lowest for assisted
living residences (91.9 percent).
Median annual resident turnover is highest for assisted living residences
(53.8 percent).
Rent charges for all units/beds sampled continue to increase at rates
exceeding inflation in broad consumer price indices over the sample period.
Some additional survey findings of interest to owners and the investment
community included:
Congregate properties generated higher median operating margins (39.7
percent) than
assisted living residences (29 percent) and CCRCs (26.6 percent).
Median current returns on investment (unleveraged) were highest for
congregate
residences (13.1 percent) follow by assisted living residences (12.4 percent)
and CCRCs
(11.8 percent).
Median debt service coverage ratios were lowest for assisted living
residences (1.4x) followed by congregate properties (1.6x) and CCRCs (1.8x).
Management fees as a percentage of total revenue are five percent over all
properties.
The State of Seniors Housing 1998 report is available for $125 and can be
ordered by calling Judy Sarch of PricewaterhouseCoopers, at 212-596-7638, or
the American Seniors Housing Association at 202-974-2353.
Published: April 16, 1999
Use of this article without permission is a violation of federal copyright laws.
