Five Star Senior Living Inc. Completes Transition of 107 Communities and Fully Exits the Skilled Nursing Business
Five Star Senior Living Inc. (NASDAQ:FVE) today announced that it has successfully completed the transition of operations for 107 senior living communities owned by Diversified Healthcare Trust (NASDAQ:DHC) and has fully exited the skilled nursing business. Five Star continues to manage 120 senior living communities owned by DHC.
Five Star now operates a total of 140 senior living communities, either managed or owned, with approximately 20,000 units, 91% of which are either Independent Living or Assisted Living and the remaining 9% are memory care units, located in 28 states. Five Star's rehabilitation and wellness services segment, primarily comprised of Ageility, a division of Five Star, now serves approximately 14,600 older adult customers in 223 outpatient clinics across 28 states. Five Star will retain all of the 45 Ageility outpatient clinics located in transitioning communities.
Katherine Potter, President and Chief Executive Officer, made the following statement regarding today's announcement:
"We have been successful in repositioning our management business to focus on our operational strengths at larger senior living communities and target active, older adult customers by transitioning 107 DHC owned communities to other operators and closing one community and approximately 1,500 skilled nursing facility living units to fully exit the skilled nursing business."
"In the coming months, we expect to turn our attention to efforts to enhance the resident experience at our communities and develop a cost-efficient and scalable platform to support our operations and drive growth. To further meet the needs of our target customers who are seeking a more independent lifestyle, we expect to continue to diversify our business through ongoing investment in Ageility and by actively pursuing an expansion of our concierge service offerings that will afford our customers the choice and financial flexibility they desire."
FVE will also support DHC in the closure of one remaining community located in Delaware.
About Five Star Senior Living Inc. (NASDAQ:FVE):
Five Star is a provider of senior living management and rehabilitation and wellness services to over 20,000 older adults. Five Star is the fifth largest senior living operator in the United States and operates active adult, independent and assisted living communities. Additionally, FVE's rehabilitation and wellness services segment includes Ageility Physical Therapy Solutions™, or Ageility, a division of FVE, which provides rehabilitation and wellness services within FVE communities as well as to external customers. FVE is headquartered in Newton, Massachusetts.
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This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Also, whenever FVE uses words such as "believe", "expect", "anticipate", "intend", "plan", "estimate", "will", "may" and negatives or derivatives of these or similar expressions, FVE is making forward-looking statements. These forward-looking statements are based upon FVE's present intent, beliefs or expectations, but forward-looking statements are not guaranteed to occur and may not occur. Actual results may differ materially from those contained in or implied by FVE's forward-looking statements as a result of various factors. Forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond FVE's control. For example:
- Ms. Potter's statements regarding the efforts that FVE expects to take to enhance residents' experience at FVE's communities and to develop a cost-efficient and scalable platform, as well as the anticipated benefits resulting from such efforts, may imply that FVE will achieve better financial and operating results as a result of these changes. FVE may not realize the benefits it anticipates after implementing its plans.
- FVE may not successfully expand its Ageility business and concierge service offering and any such expansion may not achieve the anticipated benefits of such diversification efforts.
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