Brookdale Senior Living (NYSE: BKD) is a company that operates senior's residences, established in 1978. It is a New York Stock Exchange listed company. Brookdale is the largest owner and operator of senior living communities throughout the United States", operating over 570 senior or retirement communities in the US. They have 35,000 staff and 55,000 residents.[1]
The company also offers Independent living, Personalized Assisted living, Alzheimer’s and dementia care, rehabilitation and skilled nursing. One whole-owned subsidiary company, Innovative Senior Care (ISC), offers rehabilitation, fitness and educational programming, and health services.
The Origins of Brookdale started in the late 1970s with the focus of Large Upscale Urban Retirement communities located in large cities Like Chicago, New York, and Miami. These early models replicated large full service Five Star hotels like the Hyatt, Marriott's and Hilton of the modern era. As the industry evolved into the late nineties and early 2000s, Brookdales major shareholder became Fortress Investments with approximately 51% holdings. Throughout the late nineties and early to mid 2000s Brookdale developed several more communities that resembled earlier models but also reflected the ever changing climate including Large Continuous Care Retirement Communities (CCRC) which house all brands of the aging process including Skilled Nursing, Assisted Living, Independent Living, and Memory Care facilities.
By early 2005 the company had grown to approximately 90 stand alone properties. During this times Fortress Investments had acquired the recently bankrupt Alterra Corporation (formerly Alternative Living Services) A Milwaukee WI based company who had developed and opened more than 500 stand alone Assisted Living and Memory Care properties throughout the USA between 1993 and 2003. At one Point Alterra was the largest provider of Assisted Living and Memory Care services within the United States catapulting ahead of the Industry Benchmark for Senior Living "Sunrise Senior Living of Virginia". Rapid growth proved costly and detrimental to the Alterra Corporation and that organization filed for chapter 11 bankruptcy protection in 2004. They managed to sell off a third of their assets and bring their facility total down to approximately 300. During the bankruptcy Fortress purchased Alterra and pondered whether to sell the company to Emeritus Senior Living, which was hired on to manage Alterra through the bankruptcy phase. By the time the management agreement with Emeritus was about to expire the remaining Alterra portfolio was thriving due to an aggressive push by corporate and divisional leaders to prove the company was not "dead" and was a valuable asset. Fortress at the 11th hour put together a merger that would bring their Successful Brookdale Portfolio together with their now rising Alterra Portfolio. This was approved and completed in early 2005 bringing the Brookdale property total to 390. From late 2005 to early 2007 Fortress and Brookdale took advantage of a strong market and an abundance in company cash reserves to acquire several smaller senior living organizations within the United States. These Included the April 2006 acquisition of Southern Assisted Living a Chapel Hill, North Carolina Based privately held company who managed approximately 45 properties in the Carolinas, predominantly North Carolina. Simultaneously the acquisitions of several smaller companies including Liberty Senior Services, Wellington Senior Living, and Southland properties brought Brookdale into the second spot on the leading providers list for Senior Care in the US right behind Sunrise.
In July 2006 Brookdale announced perhaps its most notable merger to date with the Nashville TN based, American Retirement Corporation (ARC) ARC operated approx 130 properties throughout the United States ranging from large CCRC campuses to Large Assisted Living and Independent Living facilities. They had been in the business since the late 1970s as well. Fortress saw this as an opportunity to put Brookdale at the forefront of Senior Living not just by sheer size but with the marrying of two of the longest-running and most successful companies in the industry. When the dust settled on the ARC merger Brookdale was operating approximately 550 communities in 36 states.
There would be no more acquisitions announced until October 2009 when the Wall Street Jornal reported that Brookdale Senior Living had entered into an Agreement with Sunrise Senior Living Services to acquire 21 free standing properties throughout the United States. The closing date for this acquisition was announced to be November 25, 2009.
Brookdale Senior Living Inc. (Brookdale) is an operator of senior living communities in the United States based on total capacity, with 565 communities in 35 states and the ability to serve approximately 53,600 residents. As of December 31, 2009, the Company operated in four business segments: retirement centers, assisted living, continuing care retirement communities (CCRCs) and management services. As of December 31, 2009, the Company operated 80 retirement center communities with 14,867 units/beds, 430 assisted living communities with 22,954 units/beds, 36 CCRCs with 12,017 units/beds and 19 communities with 3,788 units/beds, where it provides management services for third parties. Its subsidiaries include Brookdale Living Communities, Inc. (BLC), Brookdale Senior Living Communities, Inc. (Alterra), Fortress CCRC Acquisition LLC (Fortress CCRC) and American Retirement Corporation (ARC). Effective November 18, 2009, the Company acquired 18 senior living communities from affiliates of Sunrise Senior Living, Inc. (Sunrise).
Retirement Centers
The Company’s retirement centers communities are primarily designed for middle to upper income seniors, generally age 70 and older. It consists 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. Its retirement center communities are large multi-story buildings containing on average 186 units/beds with 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 basic services, such as meal service, around-the-clock emergency response, housekeeping, concierge services, transportation and recreational activities. Most of these communities also offer supplemental care services, which include medication reminders, check-in services and escort and companion services. Its Innovative Senior Care program offers various educations, wellness, therapy, home health and other ancillary services.
Assisted Living
The Company’s assisted living communities offer housing and around-the-clock assistance with more than 50 beds and smaller, freestanding single story communities with less than 50 beds. Depending upon the specific location, the community includes private studio, one-bedroom and one-bedroom deluxe apartments, 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.
The Company, under the Clare Bridge brand, operates 86 memory care communities, which are freestanding assisted living communities specially designed for residents with Alzheimer’s disease and other dementias requiring the attention, personal care and services needed to help cognitively impaired residents. Its memory care communities have from 20 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.
CCRCs
The Company’s CCRCs are communities that offer a variety of living arrangements and services to accommodate all levels of physical ability and health. Most of its CCRCs have independent living, assisted living and skilled nursing available on one campus, and some also include memory care/Alzheimer’s units. Eleven of its CCRCs are entry fee communities, in which residents in the independent living apartment units pay a one-time upfront entrance fee. It also offers an array of ancillary services, including therapy, home health, and other services through its Innovative Senior Care program, to the residents of each of its CCRCs.
Brookdale competes with Sunrise Senior Living, Inc., Emeritus Corporation, Capital Senior Living Corporation, Life Care Services, LLC and Atria Senior Living Group.
OVERALL
Beta: 2.89
Market Cap (Mil.): $3,289.99
Shares Outstanding (Mil.): 120.78
Annual Dividend: --
Yield (%): --
FINANCIALS
BKD Industry Sector
P/E (TTM): -- 23.29 40.56
EPS (TTM): 30.72 -- --
ROI: -1.24 1.76 1.91
ROE: -4.56 3.07 2.49
Name Age Since Current Position
Edens, Wesley 49 2005 Chairman of the Board
Sheriff, W. 68 2010 Chief Executive Officer, Director
Rijos, John 58 2008 Co-President, Chief Operating Officer
Ohlendorf, Mark 50 2007 Co-President, Chief Financial Officer
Hicks, George 53 2006 Executive Vice President - Finance
Richardson, Bryan 52 2008 Chief Administrative Officer, Executive Vice President
Smith, T. Andrew 50 2006 Executive Vice President, General Counsel and Secretary
Ferge, Kristin 37 2007 Executive Vice President, Treasurer
Richard, Gregory 56 2008 Executive Vice President - Field Operations
Kaestner, H. Todd 55 2006 Executive Vice President - Corporate Development
Schulte, Mark 56 2008 Director
Clegg, Jackie 48 2005 Director
Leeds, Jeffrey 65 2005 Director
Waxman, Samuel 73 2005 Director
Bumstead, Frank 69 2006 Director
Seward, James 58 2008 Director
Ippolito, Tobia 45 2009 Director
Brookdale Senior Living Inc
330 North Wabash Avenue
Suite 1400
Chicago IL 60611
The company also offers Independent living, Personalized Assisted living, Alzheimer’s and dementia care, rehabilitation and skilled nursing. One whole-owned subsidiary company, Innovative Senior Care (ISC), offers rehabilitation, fitness and educational programming, and health services.
The Origins of Brookdale started in the late 1970s with the focus of Large Upscale Urban Retirement communities located in large cities Like Chicago, New York, and Miami. These early models replicated large full service Five Star hotels like the Hyatt, Marriott's and Hilton of the modern era. As the industry evolved into the late nineties and early 2000s, Brookdales major shareholder became Fortress Investments with approximately 51% holdings. Throughout the late nineties and early to mid 2000s Brookdale developed several more communities that resembled earlier models but also reflected the ever changing climate including Large Continuous Care Retirement Communities (CCRC) which house all brands of the aging process including Skilled Nursing, Assisted Living, Independent Living, and Memory Care facilities.
By early 2005 the company had grown to approximately 90 stand alone properties. During this times Fortress Investments had acquired the recently bankrupt Alterra Corporation (formerly Alternative Living Services) A Milwaukee WI based company who had developed and opened more than 500 stand alone Assisted Living and Memory Care properties throughout the USA between 1993 and 2003. At one Point Alterra was the largest provider of Assisted Living and Memory Care services within the United States catapulting ahead of the Industry Benchmark for Senior Living "Sunrise Senior Living of Virginia". Rapid growth proved costly and detrimental to the Alterra Corporation and that organization filed for chapter 11 bankruptcy protection in 2004. They managed to sell off a third of their assets and bring their facility total down to approximately 300. During the bankruptcy Fortress purchased Alterra and pondered whether to sell the company to Emeritus Senior Living, which was hired on to manage Alterra through the bankruptcy phase. By the time the management agreement with Emeritus was about to expire the remaining Alterra portfolio was thriving due to an aggressive push by corporate and divisional leaders to prove the company was not "dead" and was a valuable asset. Fortress at the 11th hour put together a merger that would bring their Successful Brookdale Portfolio together with their now rising Alterra Portfolio. This was approved and completed in early 2005 bringing the Brookdale property total to 390. From late 2005 to early 2007 Fortress and Brookdale took advantage of a strong market and an abundance in company cash reserves to acquire several smaller senior living organizations within the United States. These Included the April 2006 acquisition of Southern Assisted Living a Chapel Hill, North Carolina Based privately held company who managed approximately 45 properties in the Carolinas, predominantly North Carolina. Simultaneously the acquisitions of several smaller companies including Liberty Senior Services, Wellington Senior Living, and Southland properties brought Brookdale into the second spot on the leading providers list for Senior Care in the US right behind Sunrise.
In July 2006 Brookdale announced perhaps its most notable merger to date with the Nashville TN based, American Retirement Corporation (ARC) ARC operated approx 130 properties throughout the United States ranging from large CCRC campuses to Large Assisted Living and Independent Living facilities. They had been in the business since the late 1970s as well. Fortress saw this as an opportunity to put Brookdale at the forefront of Senior Living not just by sheer size but with the marrying of two of the longest-running and most successful companies in the industry. When the dust settled on the ARC merger Brookdale was operating approximately 550 communities in 36 states.
There would be no more acquisitions announced until October 2009 when the Wall Street Jornal reported that Brookdale Senior Living had entered into an Agreement with Sunrise Senior Living Services to acquire 21 free standing properties throughout the United States. The closing date for this acquisition was announced to be November 25, 2009.
Brookdale Senior Living Inc. (Brookdale) is an operator of senior living communities in the United States based on total capacity, with 565 communities in 35 states and the ability to serve approximately 53,600 residents. As of December 31, 2009, the Company operated in four business segments: retirement centers, assisted living, continuing care retirement communities (CCRCs) and management services. As of December 31, 2009, the Company operated 80 retirement center communities with 14,867 units/beds, 430 assisted living communities with 22,954 units/beds, 36 CCRCs with 12,017 units/beds and 19 communities with 3,788 units/beds, where it provides management services for third parties. Its subsidiaries include Brookdale Living Communities, Inc. (BLC), Brookdale Senior Living Communities, Inc. (Alterra), Fortress CCRC Acquisition LLC (Fortress CCRC) and American Retirement Corporation (ARC). Effective November 18, 2009, the Company acquired 18 senior living communities from affiliates of Sunrise Senior Living, Inc. (Sunrise).
Retirement Centers
The Company’s retirement centers communities are primarily designed for middle to upper income seniors, generally age 70 and older. It consists 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. Its retirement center communities are large multi-story buildings containing on average 186 units/beds with 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 basic services, such as meal service, around-the-clock emergency response, housekeeping, concierge services, transportation and recreational activities. Most of these communities also offer supplemental care services, which include medication reminders, check-in services and escort and companion services. Its Innovative Senior Care program offers various educations, wellness, therapy, home health and other ancillary services.
Assisted Living
The Company’s assisted living communities offer housing and around-the-clock assistance with more than 50 beds and smaller, freestanding single story communities with less than 50 beds. Depending upon the specific location, the community includes private studio, one-bedroom and one-bedroom deluxe apartments, 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.
The Company, under the Clare Bridge brand, operates 86 memory care communities, which are freestanding assisted living communities specially designed for residents with Alzheimer’s disease and other dementias requiring the attention, personal care and services needed to help cognitively impaired residents. Its memory care communities have from 20 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.
CCRCs
The Company’s CCRCs are communities that offer a variety of living arrangements and services to accommodate all levels of physical ability and health. Most of its CCRCs have independent living, assisted living and skilled nursing available on one campus, and some also include memory care/Alzheimer’s units. Eleven of its CCRCs are entry fee communities, in which residents in the independent living apartment units pay a one-time upfront entrance fee. It also offers an array of ancillary services, including therapy, home health, and other services through its Innovative Senior Care program, to the residents of each of its CCRCs.
Brookdale competes with Sunrise Senior Living, Inc., Emeritus Corporation, Capital Senior Living Corporation, Life Care Services, LLC and Atria Senior Living Group.
OVERALL
Beta: 2.89
Market Cap (Mil.): $3,289.99
Shares Outstanding (Mil.): 120.78
Annual Dividend: --
Yield (%): --
FINANCIALS
BKD Industry Sector
P/E (TTM): -- 23.29 40.56
EPS (TTM): 30.72 -- --
ROI: -1.24 1.76 1.91
ROE: -4.56 3.07 2.49
Name Age Since Current Position
Edens, Wesley 49 2005 Chairman of the Board
Sheriff, W. 68 2010 Chief Executive Officer, Director
Rijos, John 58 2008 Co-President, Chief Operating Officer
Ohlendorf, Mark 50 2007 Co-President, Chief Financial Officer
Hicks, George 53 2006 Executive Vice President - Finance
Richardson, Bryan 52 2008 Chief Administrative Officer, Executive Vice President
Smith, T. Andrew 50 2006 Executive Vice President, General Counsel and Secretary
Ferge, Kristin 37 2007 Executive Vice President, Treasurer
Richard, Gregory 56 2008 Executive Vice President - Field Operations
Kaestner, H. Todd 55 2006 Executive Vice President - Corporate Development
Schulte, Mark 56 2008 Director
Clegg, Jackie 48 2005 Director
Leeds, Jeffrey 65 2005 Director
Waxman, Samuel 73 2005 Director
Bumstead, Frank 69 2006 Director
Seward, James 58 2008 Director
Ippolito, Tobia 45 2009 Director
Brookdale Senior Living Inc
330 North Wabash Avenue
Suite 1400
Chicago IL 60611
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