Good times, bad times continued for assisted living properties in 4Q '03.The fourth quarter of 2003 continued to be feast or famine for the assisted living as·sist·ed living n. A living arrangement in which people with special needs, especially older people with disabilities, reside in a facility that provides help with everyday tasks such as bathing, dressing, and taking medication. industry, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the newest Key Financial Indicators[TM] report from the National Investment Center for the Seniors Housing & Care Industries. The Annapolis, Md.-based research group's study on fourth quarter 2003 occupancy rates Noun 1. occupancy rate - the percentage of all rental units (as in hotels) are occupied or rented at a given time pct, per centum, percent, percentage - a proportion in relation to a whole (which is usually the amount per hundred) highlighted two types of assisted living facility properties in the marketplace: Well-operated ones with occupancy percentage rates in the 90s that are thriving, and those with occupancy rates in the mid-80s that are still struggling. [See Special Report on Assisted Living, page 16.] The association's financial and performance indicators, reported quarterly to NIC (1) (Network Interface Card) See network adapter. See also InterNIC. (2) (New Internet Computer) An earlier Linux-based computer from The New Internet Computer Company (NICC), Palo Alto, CA. by the nation's leading lenders, owners/operators and appraisal professionals in the senior living industry, also show that for the assisted living sector as a whole, fourth quarter 2003 occupancy rates held steady from third quarter, with the median and average occupancies at 85 percent. "Those properties stuck in the mid-80s continue to struggle to get a proper return on their equity," said NIC Research Director Anthony J. Mullen. "Plus, increased competition from independent living and skilled nursing crossover Crossover The point on a stock chart when a security and an indicator intersect. Crossovers are used by technical analysts to aid in forecasting the future movements in the price of a stock. In most technical analysis models, a crossover is a signal to either buy or sell. , along with active adult, senior apartments and adult daycare, are not making [things] any easier." The best-operated assisted living companies, those referred to as "Class A" properties, are achieving occupancy rates above 90 percent and are attracting excellent pricing from lenders and buyers, according to Mullen. In comparison, the median occupancy rate for skilled nursing during the fourth quarter rose slightly from 87 to 88. Overall occupancy rates in continuing care continuing care a professional convention that a veterinarian who is treating an animal is obliged to continue treating that case unless an arrangement is made with its custodian to transfer the care to another practitioner or to a specialist. retirement centers (CCRCs) dropped slightly to a median of 90 percent and an average of 89.5 percent, but this was mostly due to a drop in the occupancy rate of independent living units within the CCRCs, Mullen said. Capitalization rates Capitalization Rate According to the Appraisal Institute, it is a method used to convert an estimate of a single year's income expectancy into an indication of value in one direct step, by dividing the income estimate by an appropriate rate. , a company's forecast earnings divided by its market value, were a bright spot in the fourth quarter results. The average dropped from 11.4 to 11 for assisted living and from 14.2 to 13.6 for skilled nursing. The current capitalization rate spread "reflects what we're seeing happen with class 'A' properties and what they're trading at," said Kathryn Sweeney, principal of AEW AEW Airborne Early Warning AEW Air Expeditionary Wing AEW Airborne Electronic Warfare AEW Agr' Eau' Wat (Canadian agricultural consultant) AEW Amckerns Explosion Wars (Half Life community) Capital Management in Boston. "This is certainly good news for operators with stabilized, cash-flowing properties that have occupancies of 90 percent or better." The report is available at www.nic.org. |
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