Five Star Senior Living Inc. (Nasdaq: FVE), or Five Star, today announced progress on its strategic plan and provided certain business updates. August month end occupancy in Five Star’s owned communities was 73.7%, an increase of 320 basis points compared to July month end occupancy. August average occupancy in Five Star’s owned communities was 70.0%, an increase of 80 basis points compared to the July average occupancy. In the 120 communities Five Star will continue to manage for Diversified Healthcare Trust (Nasdaq: DHC), or the retained communities, August month end occupancy was 74.7%, an increase of approximately 100 basis points compared to the July month end occupancy. August average occupancy in the retained communities was 73.4%, an increase of 50 basis points compared to July average occupancy.
FVE also provided an update on the repositioning of its senior living management services as part of its strategic plan announced in April 2021, including the transition of 108 smaller senior living communities to other operators. FVE has now completed 62 of 108 planned transitions to other third-party operators and plans to fully complete the transition of the 108 communities by year end.
Additionally, FVE reported that all community and clinic employees are now in compliance with its previously announced requirement that those employees who work in or visit its communities or Ageility clinics as part of their responsibilities be fully vaccinated against COVID-19, with only 4.3% of employees voluntarily terminating their employment.
“We have made progress on our three-pronged strategy to ‘Reposition, Evolve and Diversify’ by transitioning these 62 communities and repositioning our senior living management services to focus on larger, higher-performing independent living, assisted living and memory care communities,” said Katherine Potter, President and Chief Executive Officer. “Going forward, we will build on our strengths operating larger senior living communities and stand-alone active adult and independent living communities while continuing to evolve our choice-based, financially flexible rehabilitation and wellness services offerings to meet the changing needs and preferences of older adults. Finally, I thank our team members for their unwavering commitment to the health and well-being of our residents and clients and providing them with an exceptional experience.”
About Five Star Senior Living Inc.:
FVE 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.
Forward Looking Statements
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. Whenever Five Star Senior Living Inc. uses words such as “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate”, “will”, “may” and negatives or derivatives of these or similar expressions, Five Star is making forward-looking statements, which include statements about Five Star’s strategic plan, the steps expected to be taken in connection with Five Star’s new strategic plan and the timing related to such steps, as well as Five Star’s expectations for the operation and performance of the business following implementation of such strategic plan. These forward-looking statements are based upon Five Star’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 Five Star’s forward-looking statements. For example, Five Star may not be able to implement each of its strategic initiatives in a timely manner or at all, the costs of such initiatives may be more than it expects, it may not realize the benefits it anticipates from the new strategic plan, and it may not be able to achieve its objectives following implementation of such strategic plan, including partially offsetting the revenue loss from the communities it intends to transition with expense reductions to right-size operations, on the anticipated timeline or at all. Forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond Five Star’s control.
The information contained in Five Star’s filings with the Securities and Exchange Commission, or SEC, including under “Risk Factors” in Five Star’s periodic reports, or incorporated therein, identifies other important factors that could cause Five Star’s actual results to differ materially from those stated in or implied by Five Star’s forward-looking statements. Five Star’s filings with the SEC are available on the SEC’s website at www.sec.gov.
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Except as required by law, Five Star does not intend to update or change any forward-looking statements as a result of new information, future events or otherwise.
Michael Kodesch, Director, Investor Relations