As the stormy economy shook the economy in the past, signs suggest a smoother ride ahead. Businesses across all U.S. sector were struggling to survive in the last year assisted living was the anchor in turbulent waters. The steady demand for high-quality services helped ensure stability for companies, even in the event of a pause from large deals and mergers.
In the midst of a recession, businesses across all U.S. sector were struggling to survive this time, the assisted living industry proved the anchor in turbulent waters. A steady demand for top-quality services was a factor in keeping companies afloat, even when they were hampered by a break from large deals and mergers.
As economic forecasters suggest the end of "Great Recession" businesses like the ones that made these years Largest Providers are set to see expansion, and some of it is already taking place. 42 of the businesses (60 percent) which included on the list for 2010 have reported growth in licensed assisted living capacity of residents. However, the majority of this growth was single-digit percentages. A further 16 of the top 70 companies remained the same size, while only 12 of them reported losses.
Here's an overview of the Assisted Living in Toronto Executive's Top 10 Largest Providers and the current business climate as well as trends, transactions, and other factors that earned each one the position.
Top Players Play Steady
In 2009, there were no assisted living facilities merged nor purchased any other full company. While the majority of deals were not significant but the year also saw several large portfolio purchases and significant reshuffles. The most significant gains and losses were the top performers and came by way of acquisitions and sales.
For the first time in a long time since Assisted Living Executive began compiling this list every year, Sunrise Senior Living, located within McLean, Virginia, no longer ranks No. 1. The firm, now No. 2 on the list, has no new developments and sold about nine percent of the assisted-living capacity (about 1,896 apartments) in the year prior. The largest sale was a collection of 21 communities spread across 11 states sold to Milwaukee the Wisconsin-based Brookdale Senior Living for $204 million. However, Sunrise did also sell smaller parts of its portfolio to providers in the region like the Baltimore-based Brightview Senior Living (The Shelter Group) who bought two the Sunrise's New Jersey communities.
The Sunrise downsizing has led to the Seattle-based Emeritus Senior Living the nation's largest assisted living in Toronto company. Emeritus has acquired 2,221 assisted living for seniors facilities that were licensed. The company has grown by 7 percent over the past year. it is very probable that Emeritus will not be able to keep the top spot in 2011 and grow significantly in 2011. The partner of the company, Blackstone Real Estate Advisors is in the process of negotiating the purchase of 134 communities run under Sunwest Management, which is currently in Chapter 11 bankruptcy. According to a preliminary contract, Emeritus would manage the properties and have the option of investing as much as 10% from the capital in joint ventures Blackstone as well as Columbia Pacific Management, an entity owned by Dan Baty, Emeritus chairman and co-CEO.
Brookdale Senior Living maintained its No. 3 spot, but saw its residents increase by 3,808, or 15 percent in 2009. Sunwest Management, last year's No. 4 company, is at the No. 7 in 2011, with 9,186 residents living in assisted living Toronto dropping 43 percent. Sunwest will disappear from the list in 2011 in the event that Blackstone or another company receives approval from the court to purchase Sunwest's remaining portfolio.
As for percentage growth The clear winner is Solana Beach the California-based Senior Resource Group, another victim of Sunwest's financial troubles. It has acquired the management of 41 property across 11 states, operating under their designation LaVida Communities, when institutional investor Lone Star Funds of Dallas bought the properties as the first major deal of the year. Senior Resource Group catapults from No. 55 up to. 11 after having increased its capacity for assisted living residents by over 500 percent up to 4,897.
Big Movers
If you're looking for the next provider to see the largest percentage increase, consider CRL Senior Living Communities, that is the number. 57 due to more than double the capacity of its assisted living Toronto units between 502 and 1,019. Additionally, along the growth path, Frontier Management expanded by 64 percent, going from 828 to 1,358 assisted living units, due to seven management contracts and two new facilities. Frontier Management jumps 15 spots from No. 57 to No. 42. Take note of this Western regional provider expand to the next level as new facilities open.
The fourth largest List jumper on the list is Carmichael the California-based Eskaton Senior Residences and Services climbing 12 places to rank No. 56. The company has reported 1,036 assisted living units licensed (up from 732 units in the previous year) due to expansions or applications for assisted living licenses.
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