A Good Investment in Valley Manor!

With the year 2010 quickly coming to an end, it is a good time to reflect on the operations of our Seniorsfirst independent retirement community. While the nursing home business has been a cash challenge, our Valley Manor apartments has been a "cash cow".


Now don't get me wrong. We have had our challenges at Valley Manor over the past few years and the tough economic times have definitely impacted retirement communities. Seniors are much less apt to make major lifestyle changes in these uncertain times. They have seen their investment portfolios diminish, their income remain flat at best and selling their home has become a really big challenge. All of this has had a significant impact on occupancy and limited the number of seniors actively seeking, or moving into, retirement communities.


So how has Valley Manor fared this year?



Well, apparently folks have determined that a property investment in Valley Manor is a real good investment in these challenging times. If they can't take the volatility of the stock market and the fixed investment market is returning a dismal interest rate, many seniors have opted to invest their available capital in a refundable entrance fee apartment at Valley Manor. And why not? Real estate has a history of being a very good long term investment and a good hedge against both inflation and stagnation. In the case of Valley Manor, it is also a lifestyle investment in that it provides housing and a quality of life for the investor.


We have had a record number of new move-ins this year opt for the refundable entrance fee option and as a result expect to take in over 1.5 million dollars in entrance fees alone. This represents a 50% increase over our historical averages and despite a decrease in our current occupancy, we will end the year with ample cash to meet both our current obligations and escrow funds for future obligations.



We continue to benefit from our low, variable interest rate mortgage and we have allocated some of these savings towards a continuing occupancy enhancement program that includes both marketing and capital improvement initiatives. While we anticipate continued pressure and challenges with respect to occupancy, we also anticipate the continuation of high numbers of entrance fees.


We will continue to advertise what many seniors have already come to recognize- that Valley Manor Apartments is a very good investment!