mary krantz presents who – greystone communities michael lanahan paul steinhoff mark andrews john...
TRANSCRIPT
WELCOME!!!
Greystone Overview & Development Timeline
Mary Krantz presents
Greystone Overview
Who – Greystone CommunitiesMichael LanahanPaul SteinhoffMark AndrewsJohn Spooner
When - 1982What – Consulting Services
Strategic PlanningMarket and Financial AnalysisSite AnalysisPlanningDevelopmentResident Marketing and SalesCapital (re)financingMergers and AcquisitionsOperations Management Services
Greystone Overview - 2
StatisticsConsulted with more than 4oo owners & sponsors in more than 40 statesDevelopment responsibility for 88 senior living community start-ups, redevelopments and expansions involving more than $5.0 billion in capital costs and providing approximatelyList in your binder in section 1
Greystone Overview - 3
Greystone Marketing RoleInterview and hire staffConduct ongoing training based on marketing phaseSet clear goalsDevelop marketing program base on proven marketing strategies as well as innovative ideas that would appeal to our prospects.Direct Advertising effortsDevelop sales promotions to help team close the saleProblem solving/trouble shooting to help improve sales performanceMonitor the lead tracking systemTrack the marketing budget during development phases .Communicate with the sponsor and gain approval for all marketing efforts.
Development Timeline
Friends/Priority PhaseConversion PhaseConstruction PhaseFill-up PhaseMaintenance PhaseRedevelopment Phase
Development Timeline
BREAK
Terminology – what’s in a name?
Senior Housing and Care
Mary Krantz presents
Industry “lingo”
Match the AcronymADA Health ServicesADL Assisted LivingAL Certificate of NeedALFA Entrance FeeCCRC Independent LivingCCAC Monthly Service FeeCON Long Term CareEF Home CareIL Skilled NursingLTC Assisted Living Federation of AmericaMSF Americans with Disability ActHC Continuing Care Retirement CommunityHH Activity of Daily LivingHS Home HealthSNF Continuing Care Accreditation Commission
CCRC
Continuing Care Retirement CommunityLife CareFee for ServiceTypes
ABC
Levels of CareIndependent LivingAssisted LivingMemory SupportSkilled Nursing
How does a word sound &feel?
Describing our clientele/Prospects/Leads & Residents:
SeniorsElders / ElderlyMature Adults, 55 plus / 55 and betterRetireesOlder Adult
Greystone UpdateBruce Byers presents
Rationale For Growth and Change
Market driven opportunity – compelling demographics
Mission – more purposeful today
Keeping up with customer – changing at a faster pace
Aging physical plants, out-dated programming and challenged business models
Limited increase in new product growth
Changing definitions of success
The Opportunity
2010 census confirms well-known trends75+ market will double over next 25 yearsBy 2030, 1 out of every 5 persons will be 65+
Recession curtailed new project growth
Preferences of coming seniors will not accept older product and programs
Change in Workforce and Retired Age Groups
Population Growth Trend
Projected 75+ Households
2000 2010 2015 2020 2025 2030 2035 -
5.0
10.0
15.0
20.0
25.0
6.8million
7.7million
8.6million
10.1million
11.7million
13.2million
14.2million
3.7million
4.2million
4.6million
5.4million
6.3million
7.1million
7.7million
Untargeted Households Top 35% of Households
Hou
seho
lds
(mill
ions
)
25% growth
33% growth
Other HouseholdsTop 35% of Households
Cumulative Market Increase
2010-2015 2010-2020 2010-2025 2010-2030 2010-20350
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
400,000
1.2 million
2.1million
2.9million
3.5million
Seni
or H
ouse
hold
Gro
wth
(Top
35%
)
Demand Influenced in Multiple Ways
Absolute demographic trends
Seniors’ propensity to choose senior living:Market education/sophisticationImpact of new product on marketLiving healthier, living longerDispersed family unit
Obsolescence of much older CCRC productPhysical plantProgrammingBusiness mix
State of Current CCRC Supply
According to 2010 state of seniors housing:38% of all CCRC Units opened before 1986Another 35% are between 10 and 25 years oldMedian CCRC is 20 years old compared with 10 years for stand-alone independent living units and assisted living units
Median opening year for AZ100 CCRCs: 1983
Suggests many CCRCs are or will become dated
Drivers
Much talk about adapting product to “new economy.” We must do thatChange is typically longer-term evolutionaryHouse - still serves same function, but how it’s designed/used has evolved over time We are seeing:
“Smaller” projects with phasingFocus on pricing strategies and tactics to incent move (not price cutting) Programming focused on healthy agingChanging business mix
CottagesApartments
Catered Living
Changing Size and Business Mix
ILUs ILUs ILUs ILUs ILUs ILUs
ALUs ALUs ALUs ALUs
SNF SNFMS
SNF SNF MS MSSNF SNF
1960's 1970-1980 1980-2000 2000-2005 2005-2010 Future
Phase II
Influencing Factors
Providing what the senior wants to buyContinuing drive to maintain independence
Services to promote aging in placeImpact of technology and Home and Community Based Services (HCBS)
Services to allowWellness and healthy aging focusLifelong learning, giving back, “green initiatives”
Impact of healthcare reform and regulatory environmentState of economy and senior perceptionsMeeting affordability and value
Product
SimplifySmaller projects and more focus on phasingMore innovative and flexible space programsFewer floor plans with recurring spaces
Areas that matter to our customerWellness and healthy agingDiningSocialization
More diversified businessContinued segmentation of the continuum of careRenewed focus on health services
Resident Program and Pricing
Value scaled resident service optionsAlternate pricing plans, marketing toolsFlexibility in defined health care benefitsPut the “customer” in chargeHospitalityHealthy Aging“Community Connectedness”Life long-learning
Questions We Get
How do I fill my empty units?
What can be done about my aging plant?
How can I improve my margin?
In what ways can we better serve our market?
Can I serve the community at large?
Is now a good time to “grow”?
Questions We Get
Where/How can I expand into new markets?
What do I do about my ghost town markets?
How do we rebalance our business portfolio?
How do I keep my costs in line?
What changes are needed to my strategic plan?
What does the consumer want?
Questions We Get
How do I get my Board to understand we can’t sit still?
How should my future growth be different than what’s worked for me in the past?
How do I know that we have the right priorities?
How do I balance fixing older assets with pursuing new growth assets?
How do we/should we measure success?
How are Sponsors Responding
Identify Growth Initiatives
(Repositioning, Expansion, Acquisition,
New Development)
Optimize Existing
Operations
Consider Ancillary
Opportunities (HCBS, PACE,
etc.)
PROVIDERS ARE MOVING FORWARD
Construction
Development
Fill-Up
Financing
Planning
CONCORDIA• Add 18 ILU
and 6 MS• $6.7 MM
EL CASTILLO EAST RIDGE• Marketing
Audit• 220 ILUs
The Barrington• Start up
CCRC with 134 ILUs• $132 MM
FIELD HOME• Add 102 IL
downsize to 96 SNF• $114 MM
Redstone• Add 36 ILUs
and Wellness• $17 MM
ABERDEEN HEIGHTS
• Start up CCRC with 243 Apts• $178.8 MM
MIRALEA
• Add 102 ILUs• $50.2 MMEdgewood
Summit• Add 18 MS
& 20 SNF• $14 MM
Loomis• Planning for
four communities
GURWIN• Planning
150-200 ILUs
JEWISH HOME SAN FRANCISCO
• Planning repositioning for 430 SNF
• Reconfigure Health Center• Add 7 AL and
MS• $9MM
Mirador – Corpus Christi, TX
The Stayton – Fort Worth, TX
Aberdeen Heights – Kirkwood, MO
Arbor Oaks at Crestview – Bryan, TX
Park Place – Elmhurst, IL
The Admiral – Chicago, IL
Greenfields Of Geneva – Geneva, IL
40
Miralea – Masonic Home, KY
The Terraces At Bonita Springs – Bonita Springs, FL
The Barrington of Carmel – Carmel, IN
Arbor Oaks at Crestview, Phase II – Bryan, TX
Redstone Village Phase IV – Huntsville, AL
San Joaquin Gardens – Fresno, CA
The Terraces At Harris Ranch – Boise, ID
Edgewood SummitCONCORDIA
49
Edgewood Summit
SponsorEdgewood Summit, Inc.
Charleston, WVPhase I – 1995Phase II – 2001
Current Scope122 ILUs10 ALs$5.8 Revenue
Project18 MS20 SNF$14.0 MM Total Uses
SponsorLutheran Senior Citizens
Oklahoma City, OKPhase I - 2005
Current Scope96 ILUs37 ALs16 MS30 SNF$6.5 Revenue
Project18 ILUs6 MS$6.1 MM Total Uses
CONCORDIA
Field Home
Field Home
SponsorField Home – Holy Comforter
Cortlandt Manor, NYSNF Built in 1985AL built in 2003
Existing202 SNF40 AL40 MS$27 MM revenue
Project102 ILUs96 Replacement SNF$114.3 MM Total Uses
The Terraces at Bonita Springs
The Terraces at Bonita Springs
SponsorSanta Fe Healthcare
Bonita Springs, FLPOS issued August 2011Scope
144 ILUs49 ALs18 MS40 SNF$172.7 MM Total Uses
Future Opportunity
Market growth remains – need will always be there
Slower economy has limited new supply, yet aging continues
Have to constantly craft our approach and product to meet changing definition of what “retirement” means and customer’s sense of value
Near term opportunities with land and construction ($/timing)
WRAP UP