This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Five Star Quality Care's CEO Present At UBS Global Healthcare Services Conference (Transcript)

By many measures Five Star makes a strong case as a solid investment opportunity. With the national platform of senior living communities, as of year end we operated 245 properties in 30 states with 27,000 living units.

We generate annual revenues in excess of $1.3 billion and we employee over 25,000 people. Our communities are predominantly private pay. Our properties are not dependent upon government sources, Medicaid and Medicare and that’s been a hallmark to Five Star to coming public decade ago.

Demographics are clearly in our favor, demand is really strong and new supply will be extremely limited over the next several years. Five Star is a great operator, we are the only company among the four largest public senior living operators has been profitable over the last eight quarters. We’ve achieved this by pushing rate and maintaining very tight expense controls, Paul will detail that in a little bit.

And last, but certainly not least, Five Star is a consolidator in this market. We closed on several deals last year that made 2011 a pretty exciting year for us on the acquisition front. We took on about 40 communities, almost 5000 units that are almost all private pay.

Five Star offers an [excellent] solution for seniors. At year end we operated 207 independent and assisted living communities. We also operated 38 skilled nursing facilities. Our communities range from large to small and from high-end to moderate. The average number of community units per community is 107 and our average monthly rent is $4,500.

The chart on the right shows our breakdown of units by type, we’re about 30% independent living, 50% assisted living and 20% skilled nursing. About 2000 of our AL units offer Alzheimer or dimension care also above 35% of our skilled nursing units, I mean, continuing care retirement communities or CCRCs. CCRC is a campus like setting, that is independent living, assisted living and skilled nursing, all in one property.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs