ALR - AlerisLife Inc. Announces First Quarter 2022 Results

May, 03 2022 04:15 PM AlerisLife Inc.

AlerisLife Inc. (Nasdaq: ALR) today announced its financial results for the three months ended March 31, 2022.

First Quarter Summary of Financial Results :

Net loss for the first quarter of 2022 was $9.7 million, or $0.31 per diluted share, compared to net income of $3.3 million, or $0.10 per diluted share, for the first quarter of 2021.

Earnings before interest, taxes, depreciation and amortization, or EBITDA, for the first quarter of 2022 was $(5.5) million compared to $6.8 million for the first quarter of 2021. Adjusted EBITDA, as described further below, was $(5.3) million for the first quarter of 2022 compared to $6.9 million for the first quarter of 2021.

EBITDA and Adjusted EBITDA are non-GAAP financial measures. Reconciliations of net (loss) income determined in accordance with U.S. generally accepted accounting principles, or GAAP, to EBITDA and Adjusted EBITDA for the first quarter of 2022 and 2021 are presented later in this press release.

RevPAR for the comparable managed communities for the first quarter of 2022 was $3,027 compared to $2,946 for the first quarter of 2021, an increase of 2.7%. Compared to the sequential quarter, RevPAR for the comparable managed communities increased 4.4%. RevPAR for the comparable owned communities for the first quarter of 2022 was $2,443 compared to $2,421 for the first quarter of 2021, an increase of 0.9%. Compared to the sequential quarter, RevPAR for the comparable owned communities increased 4.0%.

Substantially all of ALR's business is conducted by its two segments: (i) its residential segment through its Five Star Senior Living, or Five Star, brand and (ii) its lifestyle services segment primarily through its brands Ageility Physical Therapy Solutions and Ageility Fitness, or collectively Ageility, and Windsong Home Health. The following tables present data on the owned and managed senior living communities that ALR operates through its Five Star brand, including comparable community data, as well as data on the rehabilitation clinics that ALR operates through its Ageility brand, including comparable outpatient clinic data.

Summary of Operational Results




As of and for the Three Months Ended


March 31, 2022

December 31, 2021

March 31, 2021
Residential Segment:






Five Star:






Number of living units (end of period)






Independent living


10,423



10,423



10,979

Assisted living


7,715



7,764



12,109

Memory care


1,861



1,872



3,220

Skilled nursing


—



46



2,957

Total living units


19,999



20,105



29,265








RevPAR






Owned ⁽¹⁾

$
2,443


$
2,349


$
2,479

Managed

$
3,027


$
2,919


$
3,213

Quarter End Occupancy






Owned and Leased ⁽¹⁾


72.1
%


72.7
%


68.2
%
Managed


74.6
%


74.8
%


70.2
%







Comparable Communities ^(2):






RevPAR






Owned

$
2,443


$
2,349


$
2,421

Managed

$
3,027


$
2,900


$
2,946

Quarter End Occupancy






Owned


72.1
%


72.7
%


69.0
%
Managed


74.6
%


75.2
%


73.2
%
Operating Margin ⁽³⁾






Owned


(24.2
) %


(25.2
) %


(12.5
) %
Managed


5.9
%


3.5
%


8.8
%



As of and for the Three Months Ended


March 31, 2022

December 31, 2021

March 31, 2021
Lifestyle Services Segment:






Ageility:






Number of Clinics






Inpatient ⁽⁴⁾

10


10


37

Outpatient

201


205


215

Number of Visits (in thousands)






Inpatient ⁽⁴⁾

22


21


72

Outpatient

144


148


149








Comparable Outpatient Clinics ^(5):






Caseload as a % of census ⁽⁶⁾

23.9
%

24.0
%

27.0
%
Operating margin ⁽³⁾

2.7
%

9.4
%

14.9
%

___________________________

⁽¹⁾

For the three months ended March 31, 2021, includes four leased communities with approximately 200 living units previously leased from HealthPeak Properties, Inc., or HealthPeak. The lease with HealthPeak was terminated on September 30, 2021.

⁽²⁾

Comparable communities includes financial data for 20 owned senior living communities and 120 managed senior living communities that ALR continuously owned or managed and operated through its Five Star brand since January 1, 2021, exclusive of 1,532 skilled nursing facility, or SNF, living units that have been closed and are in the process of being repositioned in 27 Continuing Care Retirement Communities, or CCRCs, that ALR will continue to manage.

⁽³⁾

Operating margin is defined as operating revenue less operating expenses divided by operating revenue in each case for the business segment. For the Residential segment, it is inclusive of 1,532 SNF living units, which have been closed and are in the process of being repositioned, in 27 former CCRCs that ALR continues to manage. It is exclusive of Provider Relief Funds from the Coronavirus Aid, Relief, and Economic Security Act, or the CARES Act, and other government grants recognized as other operating income. In addition, it excludes restructuring expenses for the three months ended December 31, 2021 of $0.3 million for the comparable managed communities.

⁽⁴⁾

Subsequent to March 31, 2021, ALR closed 27 inpatient rehabilitation clinics.

⁽⁵⁾

Comparable outpatient clinics includes financial data for 185 outpatient rehabilitation clinics that ALR continuously operated since January 1, 2021.

⁽⁶⁾

Caseload as a percentage of census represents the number of Ageility customers divided by total census at the senior living communities where the Ageility outpatient rehabilitation clinics are located.

Term Loan

On January 27, 2022, ALR entered into a credit and security agreement, or the Credit Agreement, for a $95.0 million senior secured term loan, or the Loan, $63.0 million of which was funded upon the effectiveness of the Credit Agreement, including approximately $3.2 million in closing costs. The remaining proceeds include $12.0 million for capital improvements at ALR owned communities and an opportunity for another $20.0 million that is available to us upon achieving certain financial targets. The maturity date of the Loan is January 27, 2025. Subject to the payment of an extension fee and meeting certain other conditions, ALR may elect to extend the stated maturity date of the Loan for two, one-year periods. ALR is required to pay interest on outstanding amounts at an annual base rate of the Secured Overnight Financing Rate, or SOFR, plus a term SOFR adjustment of 11 basis points (subject to a minimum base rate of 50 basis points), plus 450 basis points.

Summary of Communities and Outpatient Rehabilitation Clinics

Presented below is a summary of the communities, units, average occupancy, quarter end occupancy, revenues and residential management fees for the Five Star senior living communities ALR manages for DHC, as of and for the three months ended March 31, 2022 (dollars in thousands):









Total


Communities

Units

Average Occupancy

Quarter End Occupancy

Community Revenues ⁽¹⁾

Management Fees
Independent and assisted living communities

120

17,899

74.1
%

74.6
%

$
162,552

$
8,932
Total

120

17,899

74.1
%

74.6
%

$
162,552

$
8,932

_______________________________________

⁽¹⁾

Managed senior living communities' revenues do not represent ALR's revenues, and are included to provide supplemental information regarding the operating results of the Five Star senior living communities from which ALR earns residential management fees.

Presented below is a summary of the Ageility outpatient rehabilitation clinics ALR operated as of and for the three months ended March 31, 2022 (dollars in thousands):



As of and for the Three Months Ended March 31, 2022


Number of Clinics

Total Revenue ⁽¹⁾⁽³⁾

Caseload as a % of census ⁽⁵⁾

EBITDA Margin ⁽⁴⁾
Outpatient Clinics in Five Star Managed Communities, Owned by DHC

91

$
7,300

25.5
%

4.6
%
Outpatient Clinics at ALR Owned Communities

15


761

27.9
%

2.5
%
Outpatient Clinics at Other Communities ⁽²⁾

95


3,985

21.6
%

0.6
%
Total Outpatient Clinics

201

$
12,046

23.8
%

3.2
%

_______________________________________

⁽¹⁾

Excludes revenue of $1,916 earned during the three months ended March 31, 2022 for ten Ageility inpatient rehabilitation clinics.

⁽²⁾

Other communities includes outpatient rehabilitation clinics at senior living communities not owned or managed by ALR.

⁽³⁾

Total Ageility revenue excludes home health care services, which are part of the lifestyle services segment.

⁽⁴⁾

EBITDA Margin is a non-GAAP financial measure and represents rehabilitation clinics that are in service as of March 31, 2022. A reconciliation of EBITDA Margin is presented later in this press release.

⁽⁵⁾

Conference Call Information:

At 1:00 p.m. Eastern Time on May 4, 2022, ALR's Interim President and Chief Executive Officer and Chief Financial Officer and Treasurer, Jeffrey Leer , will host a conference call to discuss ALR's first quarter 2022 financial results.

The conference call telephone number is (877) 329-4332. Participants calling from outside the United States and Canada should dial (412) 317-5436. No pass code is necessary to access the call from either number. Participants should dial in about 15 minutes prior to the scheduled start of the call. A replay of the conference call will be available through 11:59 p.m. Eastern Time on May 11, 2022. To hear the replay, dial (412) 317-0088. The replay pass code is 6043437.

A live audio webcast of the conference call will also be available in a listen-only mode on ALR’s website, www.alerislife.com . Participants wanting to access the webcast should visit ALR’s website about five minutes before the call. The archived webcast will be available for replay on ALR’s website following the call for about a week. The transcription, recording and retransmission in any way of ALR's first quarter ended March 31, 2022 financial results conference call are strictly prohibited without the prior written consent of ALR. ALR’s website is not incorporated as part of this press release.

About AlerisLife:

AlerisLife enriches and inspires the lives of its older adult customers across the United States by delivering an exceptional and enhanced resident experience to senior living and active adult residents, while also offering lifestyle services to the younger choice-based consumer. The Company is headquartered in Newton, Massachusetts. For more information, visit www.alerislife.com .

AlerisLife Inc.
Condensed Consolidated Statements of Operations
(amounts in thousands, except per share amounts)
(unaudited)




Three Months Ended March 31,



2022



2021

REVENUES




Lifestyle services

$
14,139


$
19,553

Residential


15,386



17,057

Residential management fees


8,932



13,850

Total management and operating revenues


38,457



50,460

Reimbursed community-level costs incurred on behalf of managed communities


130,936



213,160

Other reimbursed expenses


3,750



5,480

Total revenues


173,143



269,100






Other operating income


42



7,793






OPERATING EXPENSES




Lifestyle services expenses


13,221



16,210

Residential wages and benefits


8,627



12,013

Other residential operating expenses


7,349



6,266

Community-level costs incurred on behalf of managed communities


130,936



213,160

General and administrative


18,192



22,641

Depreciation and amortization


3,163



2,940

Total operating expenses


181,488



273,230






Operating (loss) income


(8,303
)


3,663






Interest, dividend and other income


80



84

Interest and other expense


(1,032
)


(463
)
Unrealized (loss) gain on equity investments


(632
)


135

Realized (loss) gain on sale of debt and equity investments


(45
)


96

Gain on termination of lease


279



—

(Loss) income before income taxes


(9,653
)


3,515

Provision for income taxes


(77
)


(200
)
Net (loss) income

$
(9,730
)

$
3,315






Weighted average shares outstanding—basic


31,787



31,530

Weighted average shares outstanding—diluted


31,787



31,662






Net (loss) income per share—basic

$
(0.31
)

$
0.11

Net (loss) income per share—diluted

$
(0.31
)

$
0.10

AlerisLife Inc.
Reconciliation of Non-GAAP Financial Measures
(dollars in thousands)
(unaudited)

Non-GAAP financial measures are financial measures that are not determined in accordance with GAAP. ALR believes the non-GAAP financial measures presented in the tables below are meaningful supplemental disclosures because they may help investors better understand changes in ALR’s operating results and its ability to meet financial obligations or service debt, make capital expenditures and expand its business. These non-GAAP financial measures may also help investors make comparisons between ALR and other companies on both a GAAP and non-GAAP basis. ALR believes that EBITDA, Adjusted EBITDA and EBITDA Margin are meaningful financial measures that may help investors better understand its financial performance, including by allowing investors to compare ALR's performance between periods and to the performance of other companies. ALR management uses EBITDA, Adjusted EBITDA and EBITDA Margin to evaluate ALR’s financial performance and compare ALR’s performance over time and to the performance of other companies. ALR calculates EBITDA, Adjusted EBITDA and EBITDA Margin as shown below. These measures should not be considered as alternatives to net income (loss) or operating income (loss), as indicators of ALR’s operating performance or as measures of ALR’s liquidity. Also, EBITDA, Adjusted EBITDA and EBITDA Margin as presented may not be comparable to similarly titled amounts calculated by other companies.

ALR believes that net income (loss) is the most directly comparable financial measure, determined according to GAAP, to ALR’s presentation of EBITDA and Adjusted EBITDA. The following table presents the reconciliation of these non-GAAP financial measures to net income (loss) for the three months ended March 31, 2022 and 2021.



Three Months Ended March 31,



2022



2021

Net (loss) income

$
(9,730
)

$
3,315

Add (less):




Interest and other expense


1,032



463

Interest, dividend and other income


(80
)


(84
)
Provision for income taxes


77



200

Depreciation and amortization


3,163



2,940

EBITDA


(5,538
)


6,834

Add (less):




Unrealized loss (gain) on equity investments


632



(135
)
Gain on termination of leases


(279
)


—

Net restructuring expenses ⁽¹⁾


(154
)


250

Adjusted EBITDA

$
(5,339
)

$
6,949

_______________________________________

⁽¹⁾

Includes costs incurred related to the repositioning of ALR's residential service offerings and the restructuring for the three months ended March 31, 2022 and 2021, respectively, and are included in general and administrative expenses in the condensed consolidated statements of operations.

AlerisLife Inc.
Reconciliation of Non-GAAP Financial Measures
(dollars in thousands)
(unaudited)

ALR believes that net income (loss) is the most directly comparable financial measure, determined according to GAAP, to ALR’s presentation of EBITDA. The following table presents the reconciliation of these non-GAAP financial measures to net income for the three months ended March 31, 2022 for Ageility.



Three Months Ended March 31, 2022


Total
Lifestyle services:


Revenue

$
14,139

Less: Home health services


177

Less: Inpatient rehabilitation ⁽¹⁾


1,916

Total Ageility revenue ⁽²⁾

$
12,046




Ageility:


Net Income

$
171

Add: Depreciation


97

EBITDA

$
268

EBITDA Margin ⁽³⁾


2.2
%

_______________________________________

⁽¹⁾

Revenue for ten Ageility inpatient rehabilitation clinics that currently remain operated by Ageility.

⁽²⁾

Total Ageility revenue includes revenue from outpatient rehabilitation clinics and fitness.

⁽³⁾

EBITDA Margin is defined by ALR as EBITDA for the period divided by total revenue for the period.

AlerisLife Inc.
Condensed Consolidated Balance Sheets
(dollars in thousands, except per share amounts)
(unaudited)




March 31,

December 31,



2022



2021

ASSETS




Current assets:




Cash and cash equivalents

$
88,054


$
66,987

Restricted cash and cash equivalents


25,129



24,970

Accounts receivable, net


9,414



9,244

Due from related person


48,717



41,664

Debt and equity investments, of which $7,062 and $7,609 are restricted, respectively


17,835



19,535

Prepaid expenses and other current assets


22,479



24,433

Total current assets


211,628



186,833






Property and equipment, net


160,170



159,843

Operating lease right-of-use assets


6,123



9,197

Finance lease right-of-use assets


3,236



3,467

Restricted cash and cash equivalents


995



982

Restricted debt and equity investments


3,635



3,873

Other long-term assets


10,683



12,082

Total assets

$
396,470


$
376,277






LIABILITIES AND SHAREHOLDERS’ EQUITY




Current liabilities:




Accounts payable

$
11,868


$
37,516

Accrued expenses and other current liabilities


36,830



31,488

Accrued compensation and benefits


31,087



34,295

Accrued self-insurance obligations


28,950



31,739

Operating lease liabilities


476



699

Finance lease liabilities


889



872

Due to related persons


4,332



3,879

Current portion of debt


422



419

Total current liabilities


114,854



140,907






Long-term liabilities:




Accrued self-insurance obligations


34,050



34,744

Operating lease liabilities


6,190



9,366

Finance lease liabilities


2,821



3,050

Long-term debt


66,770



6,364

Other long-term liabilities


247



256

Total long-term liabilities


110,078



53,780






Commitments and contingencies









Shareholders’ equity:




Common stock, par value $0.01: 75,000,000 shares authorized, 32,550,895 and 32,662,649 shares issued and outstanding, respectively


326



327

Additional paid-in-capital


461,468



461,298

Accumulated deficit


(290,794
)


(281,064
)
Accumulated other comprehensive income


538



1,029

Total shareholders’ equity


171,538



181,590

Total liabilities and shareholders' equity

$
396,470


$
376,277

AlerisLife Inc.
Residential Segment Data
(dollars in thousands, except per unit amounts)
(unaudited)




Three Months Ended


March 31,

December 31,

September 30,

June 30,

March 31,



2022



2021



2021



2021



2021












Owned and Leased Senior Living Communities










Independent and assisted living communities:










Revenues

$
15,386


$
14,883


$
16,320


$
16,378


$
17,057

Other operating income ⁽¹⁾


42



—



—



2



7,774

Operating expenses


19,371



18,574



17,895



21,012



20,414

Operating (loss) income


(3,943
)


(3,691
)


(1,575
)


(4,632
)


4,417

Operating margin


(25.6
) %


(24.8
) %


(9.7
) %


(28.3
) %


17.8
%
Number of communities (end of period)


20



20



20



24



24

Number of living units (end of period) ⁽²⁾


2,100



2,100



2,099



2,251



2,302

Average occupancy


71.0
%


72.0
%


69.9
%


68.1
%


68.3
%
Quarter end occupancy


72.1
%


72.7
%


72.9
%


69.7
%


68.2
%
RevPAR ⁽³⁾

$
2,443


$
2,349


$
2,411


$
2,425


$
2,479

RevPOR ⁽⁴⁾

$
3,444


$
3,192


$
3,375


$
3,524


$
3,630












Managed Senior Living Communities ^{(5) :}










Residential management fees

$
8,932


$
9,482


$
11,220


$
12,927


$
13,850

Community-level revenues


162,552



161,907



210,160



243,947



259,966

Other operating income ⁽¹⁾


199



602



786



16,564



1,617

Community-level expenses ⁽⁶⁾


152,892



159,329



203,756



237,461



247,171

Community operating income


9,859



3,180



7,190



23,050



14,412

Community operating margin


6.1
%


2.0
%


3.4
%


8.8
%


5.5
%
Number of communities (end of period)


120



121



159



228



228

Number of living units (end of period) ⁽²⁾


17,899



18,005



20,669



25,482



26,963

Average occupancy


74.1
%


73.7
%


72.2
%


69.5
%


69.5
%
Quarter end occupancy


74.6
%


74.8
%


73.8
%


71.3
%


70.2
%
RevPAR ⁽³⁾

$
3,027


$
2,919


$
3,046


$
3,086


$
3,213

RevPOR ⁽⁴⁾

$
4,084


$
3,875


$
4,129


$
4,389


$
4,623

_______________________________________

⁽¹⁾

Other operating income represents income recognized for funds received under the CARES Act and other government grants.

⁽²⁾

Includes living units categorized as in service. As a result, the number of living units may vary from period to period for reasons other than the acquisition or disposition of senior living communities.

⁽³⁾

RevPAR is defined by ALR as resident fee revenues for the corresponding portfolio for the period divided by the average number of available units for the period, divided by the number of months in the period. Data for the three months ended March 31, 2022, December 31, 2021, September 30, 2021, June 30, 2021 and March 31, 2021 exclude income received by senior living communities under the CARES Act and other government grants.

⁽⁴⁾

RevPOR is defined by ALR as resident fee revenues for the corresponding portfolio for the period divided by the average number of occupied units for the period, divided by the number of months in the period. Data for the three months ended March 31, 2022, December 31, 2021, September 30, 2021, June 30, 2021 and March 31, 2021 exclude income received by senior living communities under the CARES Act and other government grants.

⁽⁵⁾

Managed senior living communities, other than ALR's residential management fees, represents financial data of senior living communities managed for DHC and does not represent financial results of ALR. Managed senior living communities' data is included to provide supplemental information regarding the operating results of the senior living communities from which ALR earns residential management fees.

⁽⁶⁾

The three months ended December 31, 2021, September 30, 2021 and June 30, 2021 includes restructuring expense of $966, $813 and $11,531, respectively.

AlerisLife Inc.
Comparable Communities Residential Segment Data
(dollars in thousands, except per unit amounts)
(unaudited)




Three Months Ended


March 31,

December 31,

September 30,

June 30,

March 31,



2022



2021



2021



2021



2021

Owned Senior Living Communities ⁽²⁾ :










Number of communities (end of period)


20



20



20



20



20

Number of living units (end of period) ⁽¹⁾


2,100



2,100



2,099



2,099



2,099

Average occupancy


71.0
%


72.0
%


70.4
%


68.3
%


68.9
%
Quarter end occupancy


72.1
%


72.7
%


72.9
%


70.1
%


69.0
%
RevPAR ⁽³⁾

$
2,443


$
2,349


$
2,354


$
2,357


$
2,421

RevPOR ⁽⁴⁾

$
3,444


$
3,192


$
3,270


$
3,413


$
3,515












Managed Senior Living Communities ⁽²⁾⁽⁵⁾ :










Number of communities (end of period)


120



120



120



120



120

Number of living units (end of period) ⁽¹⁾


17,899



17,899



17,899



17,898



17,906

Average occupancy


74.1
%


74.1
%


73.4
%


72.9
%


72.7
%
Quarter end occupancy


74.6
%


75.2
%


74.6
%


73.3
%


73.2
%
RevPAR ⁽³⁾

$
3,027


$
2,900


$
2,941


$
2,961


$
2,946

RevPOR ⁽⁴⁾

$
4,084


$
3,831


$
3,922


$
4,018


$
4,051

_______________________________________

⁽¹⁾

⁽²⁾

Includes data for Five Star senior living communities that ALR has continuously owned or managed since January 1, 2021. The summary of operations for comparable communities excludes 1,532 SNF living units that have been closed in 27 CCRCs which are in the process of being repositioned and which ALR will continue to manage for DHC.

⁽³⁾

⁽⁴⁾

⁽⁵⁾

Residential segment data for comparable managed senior living communities represents financial data of senior living communities managed for DHC and does not represent financial results of ALR. Managed senior living communities' data is included to provide supplemental information regarding the operating results of the senior living communities from which ALR earns residential management fees.

AlerisLife Inc.
Lifestyle Services Segment Data
(dollars in thousands)
(unaudited)




Three Months Ended


March 31,

December 31,

September 30,

June 30,

March 31,



2022



2021



2021



2021



2021

Lifestyle Services ⁽¹⁾ :










Revenues

$
14,139


$
15,626


$
15,382


$
17,453


$
19,553

Outpatient


11,165



12,848



12,747



13,688



13,098

Fitness


881



890



853



827



733

Other


2,093



1,888



1,782



2,938



5,722

Other operating income ⁽²⁾


—



—



—



—



19

Operating expenses ⁽³⁾


13,334



14,045



13,348



17,517



16,338

Operating income (loss)


805



1,581



2,034



(64
)


3,234

Operating margin


5.7
%


10.1
%


13.2
%


(0.4
) %


16.5
%
Number of inpatient clinics (end of period)


10



10



10



10



37

Number of outpatient clinics (end of period)


201



205



223



218



215

Number of fitness locations (end of period)


73



60



61



43



42

_______________________________________

⁽¹⁾

Includes Ageility rehabilitation clinics and fitness operations as well as home healthcare operations.

⁽²⁾

Other operating income represents income recognized for funds received under the CARES Act and other government grants.

⁽³⁾

The three months ended December 31, 2021, September 30, 2021 and June 30, 2021 includes restructuring expenses of $23, $(310) and $1,720, respectively

AlerisLife Inc.
Comparable Lifestyle Services Segment Data
(dollars in thousands)
(unaudited)




Three Months Ended


March 31,

December 31,

September 30,

June 30,

March 31,



2022



2021



2021



2021



2021

Lifestyle Services ⁽¹⁾ :










Revenues

$
11,670


$
13,016


$
13,028


$
13,943


$
13,288

Outpatient


10,628



11,923



11,929



12,834



12,304

Fitness


864



859



825



801



703

Other


178



234



274



308



281

Other operating income ⁽²⁾


—



—



—



—



19

Operating expenses


11,364



11,758



11,695



12,340



11,464

Operating income


306



1,258



1,333



1,603



1,843

Operating margin


2.6
%


9.7
%


10.2
%


11.5
%


13.8
%
Number of inpatient clinics (end of period)


—



—



—



—



—

Number of outpatient clinics (end of period)


185



185



185



185



185

Number of fitness locations (end of period)


69



52



58



40



40

_______________________________________

⁽¹⁾

Includes Ageility outpatient rehabilitation clinics and fitness operations as well as home healthcare operations that ALR has continuously operated since January 1, 2021.

⁽²⁾

Other operating income represents income recognized for funds received under CARES Act and other government grants.

AlerisLife Inc.
Owned Senior Living Communities as of and for the Three Months Ended March 31, 2022
(dollars in thousands)
(unaudited)


No.

Community Name

State

Property Type ⁽¹⁾

Living Units

Residential Revenues ⁽⁴⁾

Gross Carrying Value

Net Carrying Value

Date Acquired

Most Recent Renovation
1

Morningside of Decatur ⁽²⁾

Alabama

AL

49

$
315

$
7,538

$
4,127

11/19/2004

2021
2

Morningside of Auburn ⁽²⁾

Alabama

AL

42


342


2,153


1,036

11/19/2004

1997
3

The Palms of Fort Myers ⁽²⁾

Florida

IL

218


1,813


7,280


3,870

4/1/2002

1988
4

Five Star Residences of Banta Pointe ⁽³⁾

Indiana

AL

121


733


10,978


6,356

9/29/2011

2006
5

Five Star Residences of Fort Wayne ⁽²⁾

Indiana

AL

154


958


9,176


5,720

9/29/2011

1998
6

Five Star Residences of Clearwater

Indiana

AL

88


351


14,254


8,993

6/1/2011

1999
7

Five Star Residences of Lafayette

Indiana

AL

109


582


11,795


7,547

6/1/2011

2000
8

Five Star Residences of Noblesville ⁽²⁾

Indiana

AL

151


1,176


13,827


8,689

7/1/2011

2005
9

The Villa at Riverwood ⁽²⁾

Missouri

IL

112


708


4,967


3,252

4/1/2002

1986
10

Voorhees Senior Living ⁽²⁾

New Jersey

AL

104


924


19,814


13,429

7/1/2008

1999
11

Washington Township Senior Living

New Jersey

AL

93


775


26,358


17,326

7/1/2008

1998
12

Carriage House Senior Living ⁽²⁾

North Carolina

AL

98


946


9,938


5,331

12/1/2008

1997
13

Forest Heights Senior Living ⁽²⁾

North Carolina

AL

111


773


16,242


10,610

12/1/2008

1998
14

Fox Hollow Senior Living ⁽²⁾

North Carolina

AL

77


1,137


25,691


17,223

7/1/2000

1999
15

Legacy Heights Senior Living ⁽²⁾

North Carolina

AL

116


588


7,670


3,617

12/1/2008

1997
16

Morningside at Irving Park ⁽²⁾

North Carolina

AL

91


796


3,800


1,610

11/19/2004

1997
17

The Devon Senior Living

Pennsylvania

AL

84


482


32,837


14,905

7/1/2008

1985
18

The Legacy of Anderson ⁽²⁾

South Carolina

IL

101


613


11,080


6,429

12/1/2008

2003
19

Morningside of Springfield ⁽²⁾

Tennessee

AL

54


526


18,784


11,679

11/19/2004

1984
20

Huntington Place

Wisconsin

AL

127


855


2,445


1,511

7/15/2010

1999


Total





2,100

$
15,393

$
256,627

$
153,260

_______________________________________

⁽¹⁾

AL is primarily an assisted living community and IL is primarily an independent living community.

⁽²⁾

Encumbered property under ALR's $95,000 Loan.

⁽³⁾

Encumbered property under ALR's mortgage note having an aggregate principal amount outstanding of $6,877 as of March 31, 2022.

⁽⁴⁾

Excludes funds received under the CARES Act recognized as other operating income.

Warning Concerning 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. Also, whenever AlerisLife uses words such as “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate”, "will", “may” and negatives or derivatives of these or similar expressions, ALR is making forward-looking statements. These forward-looking statements are based upon ALR’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 ALR’s forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond ALR's control.

The information contained in ALR’s filings with the Securities and Exchange Commission, or SEC, including under “Risk Factors” in ALR’s periodic reports, or incorporated therein, identifies other important factors that could cause ALR’s actual results to differ materially from those stated in or implied by ALR’s forward-looking statements. ALR’s filings with the SEC are available on the SEC’s website at www.sec.gov .

You should not place undue reliance upon forward-looking statements.

Except as required by law, ALR does not intend to update or change any forward-looking statements as a result of new information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220503006179/en/

Michael Kodesch, Director, Investor Relations
(617) 796-8245

Company Name:	AlerisLife Inc.
Stock Symbol:	ALR
Market:	NASDAQ
Website:	alere.com

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