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Straight ‘As’ on their financial report card

Greenspring residents enjoy peace of mind from their sound investment

Created date

August 20th, 2014

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Standard & Poor's, a bonds rating agency that provides information to current and potential purchasers of publicly traded bonds, recently upgraded its long-term rating of Greenspring, an Erickson Living community in Springfield, Va., from "A-" to "A" in its review. 

"The rating increase is tremendously positive news for both current and future residents of Greenspring," says Berwick Drews, Greenspring's director of finance. "It provides further confirmation that moving to Greenspring is a financially sound decision, allowing residents to take comfort in knowing their investment is secure."

Keeping the books

Standard & Poor's cites several key credit strengths for the increased rating, including strong oversight by the board of directors and excellent management by Erickson Living Management, LLC. 

According to the review, "Greenspring has a financial profile that is solid at the current rating level, featuring positive results from operations, strong debt service coverage, a modest debt burden, very young age of plant, and strong liquidity."

"Greenspring residents should feel confident about the financial standing of the community," says Howard Wachspress, who moved to Greenspring in 2003 after retiring from his position as an actuary for The Travelers Insurance Company. He now serves on the Resident Council Finance Committee. 

"Greenspring is currently very strong financially, and I believe most residents who look at our published quarterly results are aware of our excellent financial standing. The increased bond rating means that Greenspring is very highly rated when it comes to paying off their bonds and other debts. It also means that the market will now look more favorably at Greenspring and will likely issue future bonds at a more favorable interest rate."

Industry leader

Standard & Poor's notes that Greenspring's strong operating performance is also due to its consistently high occupancy level across all levels of care. Greenspring maintains 99% occupancy in independent living, significantly higher than the continuing care retirement community (CCRC) industry average hovering around 90%.

Greenspring's assisted living and skilled nursing occupancy rates are also excellent, ranging from the mid- to high-90% range since 2007. 

According to the review, Greenspring benefits from its location in economically favorable Fairfax County, which has a diverse economic base, highly educated labor force, and high income levels. 

Greenspring also has a strong priority list, with almost 1,400 depositors. By paying a refundable $1,000 deposit and nonrefundable $150 application fee per person, those on the priority list have the first choice of their preferred apartment home when it becomes available. 

Looking forward

Standard & Poor's indicates a stable outlook for Greenspring's financial future and continued financial success. Greenspring is committed to reinvesting in the community to maintain high satisfaction among current residents while remaining attractive to the next generation of residents.

Part of that commitment involves a modernization plan for each apartment home prior to the arrival of a new resident. A master plan has also been developed for Greenspring with a significant focus on modernizing the health, wellness, and culinary experience in response to the demands of the next generation. 

Still under development, the first phase of the plan aims to modernize and expand the fitness center, the aquatics center, and the continuing care neighborhood. The community plans to tap into cash reserves to fund the master plan, rather than take on long-term debt.

"With about $115 million of invested reserves, we are well positioned to make the future capital improvements that will keep this community vibrant and competitive in the CCRC marketplace," says Howard. "Anyone seeking a quality CCRC should put Greenspring at the top of their list."

Drews agrees.

"The future is bright for Greenspring," he says. "As we respond to emerging trends in retirement living, we will continue to provide a premier and affordable lifestyle for seniors in Northern Virginia."

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