Investor Relations
(206) 298-2909
Emeritus Closes On Agreement To Lease Eleven Communities
Emeritus Corporation (NYSE: ESC), a national provider of assisted living and related services to senior citizens, announced that the previously disclosed transaction to lease 11 communities from affiliates of HCP, Inc. (NYSE: HCP) has closed effective December 1, 2008. The communities are comprised of 1,462 units and are located in California, Connecticut, Massachusetts, Maryland, New Jersey, and Virginia. The term of the lease is ten years with an option to purchase the properties beginning at the end of the fifth year and continuing through the end of the lease term.
The communities primarily provide assisted living services, but have a capacity of 292 Alzheimer’s care units and 180 skilled nursing beds. The current average occupancy is approximately 89% with an average monthly rate per occupied unit of approximately $5,400 and an operating margin of approximately 27% (before management fees). Through the first three quarters of 2008, Emeritus’ community operating margin (before management fees) was approximately 35%.
Mr. Granger Cobb, the Company’s President and Co-CEO, stated, “We are proud to welcome these 11 new communities to the Emeritus family and we are excited that HCP has selected us as the operator. This portfolio fits seamlessly within our existing regional oversight structure and, with solid occupancy and rates in desirable markets, it represents an excellent growth opportunity.”
About Emeritus Senior Living
Emeritus Corporation is a national provider of assisted living and Alzheimer's and related dementia care services to seniors. Emeritus is one of the largest and most experienced operators of freestanding assisted living communities located throughout the United States. These communities provide a residential housing alternative for senior citizens who need assistance with the activities of daily living, with an emphasis on personal care services, which provides support to the residents in the aging process. Emeritus currently operates 309 communities in 36 states representing capacity for approximately 27,200 units and approximately 32,400 residents. Our common stock is traded on the New York Stock Exchange under the symbol ESC, and our home page can be found on the Internet at www.emeritus.com.
Forward Looking Statements
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: A number of the matters and subject areas discussed in this report that are not historical or current facts deal with potential future circumstances, operations, and prospects. The discussion of such matters and subject areas is qualified by the inherent risks and uncertainties surrounding future expectations generally, and also may materially differ from our actual future experience as a result of such factors as: the effects of competition and economic conditions on the occupancy levels in our communities; our ability under current market conditions to maintain and increase our resident charges in accordance with our rate enhancement programs without adversely affecting occupancy levels; increases in interest costs as a result of re-financings; our ability to control community operation expenses, including insurance and utility costs, without adversely affecting the level of occupancy and the level of resident charges; our ability to generate cash flow sufficient to service our debt and other fixed payment requirements; our ability to find sources of financing and capital on satisfactory terms to meet our cash requirements to the extent that they are not met by operations, uncertainties related to professional liability claims; and uncertainties about our ability to successfully integrate our company after the merger with Summerville Senior Living, Inc. We have attempted to identify, in context, certain of the factors that we currently believe may cause actual future experience and results to differ from our current expectations regarding the relevant matter or subject area. These and other risks and uncertainties are detailed in our reports filed with the Securities and Exchange Commission, including "Item 1A. Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2007.
More Press Releases
