Profile: Brookdale Senior Living Inc (BKD.N)
20 May 2013
Brookdale Senior Living Inc. (Brookdale) is an owner and operator of senior living communities throughout the United States. As of December 31, 2011, the Company operated of senior living communities in the United States based on total capacity, with 647 communities in 36 states and served approximately 67,100 residents. The Company offers its residents access to a full continuum of services across the sectors of the senior living industry. As of December 31, 2011, the Company operated in four business segments: retirement centers, assisted living, continuing care retirement communities (CCRCs) and management services. Effective January 13, 2011, the Company acquired the underlying real estate interest in 12 assisted living communities that the Company previously leased. Effective February 1, 2011, the Company acquired the underlying real estate interest in one assisted living community that the Company previously leased. Effective February 1, 2011, the Company acquired one assisted living community. Effective November 1, 2011, the Company acquired one assisted living community that the Company previously managed. On September 1, 2011, the Company acquired Horizon Bay Realty, L.L.C. (Horizon Bay). In January 2013, the Company acquired 12 communities with a total of 871 units.
As of December 31, 2011, the Company operated 76 retirement center communities with 14,563 units, 434 assisted living communities with 21,673 units, 40 CCRCs with 12,569 units and 97 communities with 18,302 units where it provided management services for third parties or joint ventures in which it has an ownership interest. Its units are located in campus settings or communities containing multiple services, including CCRCs. During 2011, it generated approximately 79.5% of its revenues from private pay customers. During 2011, 40.8% of its revenues were generated from owned communities, 52.4% from leased communities and 6.8% from management fees from communities it operated on behalf of third parties or joint ventures.
The Company’s retirement center communities are designed for middle to upper income seniors generally age 75 and older who desire an upscale residential environment. Its retirement center communities consist of both independent and assisted living units in a single community, which allows residents to age-in-place by providing them with a continuum of senior independent and assisted living services. As of December 31, 2011, approximately 76.8% of all of the units at its retirement center communities are independent living units, with the balance of units licensed for assisted living. Its retirement center communities are multi-story buildings containing on average 192 units with extensive common areas and amenities. Residents may choose from studio, one-bedroom and two-bedroom units, depending upon the specific community. Each retirement center community provides residents with services, such as meal service, around-the-clock emergency response, housekeeping, concierge services, transportation and recreational activities. These communities also offer custom tailored supplemental care services, which may include medication reminders, check-in services and escort and companion services. In addition, its Innovative Senior Care program is available in its retirement centers communities. Through the program, it offers its residents education, wellness, therapy, home health and other ancillary services. In addition to the basic services, its retirement center communities, which include assisted living also provide residents with supplemental care service options to provide assistance with activities of daily living (ADLs). Residents with cognitive or physical frailties and higher level service needs are accommodated with supplemental services in their own units or, in certain communities, are cared for in a more structured and supervised environment on a separate wing or floor. These communities also have a assisted living staff, including nurses at the communities, and separate assisted living dining rooms and activity areas. During the year ended December 31, 2011, the communities in its Retirement Centers segment represent approximately 21.7% of its total senior living capacity.
The Company’s assisted living communities offer housing and around-the-clock assistance with ADLs to mid-acuity frail and elderly residents. Its assisted living communities include both freestanding, multi-story communities with more than 50 beds and smaller, freestanding single story communities with less than 50 beds. The community include private studio, one-bedroom and one-bedroom deluxe apartments, and individual rooms for one or two residents in wings or neighborhoods scaled to a single-family home, which includes a living room, dining room, patio or enclosed porch, laundry room and personal care area, as well as a caregiver work station. Under its Clare Bridge brand, it also operates 86 memory care communities, which are freestanding assisted living communities designed for residents with Alzheimer’s disease and other dementias. Its memory care communities have from 19 to 60 beds and some are part of a campus setting, which includes a freestanding assisted living community. All residents at its assisted living and memory care communities receive the basic care level, which includes ongoing health assessments, three meals per day and snacks, coordination of special diets planned by a registered dietitian, assistance with coordination of physician care, social and recreational activities, housekeeping and personal laundry services.
The Company offers its residents exercise programs and programs designed to address issues associated with early stages of Alzheimer’s and other forms of dementia. In addition, it offers personal care services to residents at these communities who are very physically frail or experiencing early stages of Alzheimer’s disease or other dementia and who require intensive physical assistance or increased personal care and supervision. It also offers Senior Care program at certain of its assisted living and memory care communities. Specialized services include assistance with ADLs, behavior management and an activities program, which provides an environment that supports residents’ remaining functional abilities. Residents participate in all facets of daily life at the residence, such as assisting with meals, laundry and housekeeping. During 2011, the communities in its Assisted Living segment (including its memory care communities) represented approximately 32.3% of its total senior living capacity.
The Company’s CCRCs are communities, which offer a range of living arrangements and services to accommodate all levels of physical ability and health. Its CCRCs have independent living, assisted living and skilled nursing available on one campus, and include memory care/Alzheimer’s service areas. Eleven of its CCRCs, which it owns or leases are entrance fee communities, in which residents in the independent living apartment units pay a one-time upfront entrance fee, which fee is refundable in certain circumstances. In addition to their initial entrance fee, residents under all of its entrance fee agreements also pay a monthly service fee, which entitles them to the use of certain amenities and services. It also offers a range of ancillary services, including therapy, home health, and other services through its Innovative Senior Care program, to the residents of each of its CCRCs. The communities in its CCRCs segment represent approximately 18.7% of its total senior living capacity. During 2011, the independent living units at its entrance fee communities represented 4.6% of its total senior living capacity.
The Company operates its communities pursuant to management agreements. In some of these cases, the controlling financial interest in the community is held by third parties and, in other cases, the community is owned in a joint venture structure in which it has an ownership interest. Under the management agreements for these communities, it receives management fees, as well as reimbursed expenses, which represent the reimbursement of expenses it incurs on behalf of the owners. The communities in its Management Services segment represent 27.3% of its total senior living capacity. As of December 31, 2011, it managed a total of 97 communities with a total of 18,302 units on behalf of third parties or joint ventures, in which it has an ownership interest. As of December 31, 2011, there were a total of 63 retirement centers, 22 assisted living communities and 12 CCRC communities (of which six are entrance fee communities) in its Management Services segment.
The Company competes with Sunrise Senior Living, Inc., Emeritus Corporation, Capital Senior Living Corporation, Life Care Services, LLC, Atria Senior Living Group, HCP, Inc., Ventas, Inc. and Health Care REIT, Inc.
Brookdale Senior Living Inc
Suite 400, 111 Westwood Place
BRENTWOOD TN 37027