Forum Retirement Partners Reports Quarterly and Six-Month Results

Forum Retirement Partners, L.P., a Bethesda, MD based retirement community master limited partnership, announced its results of operations for the quarter and six months ended June 30, 1998. The company reported a revenue increase of $665,000, or 7%, to $9,731,000 compared to the same period in 1997. This growth was driven by increases in residency fees and charges in the independent living, assisted living, and nursing components, as well as the favorable impact of the expansion units and increases in therapy and other ancillary healthcare services. However, the company faced increased market competition for its Delaware and Texas communities and higher wage costs from engaging and maintaining qualified nursing staff. Despite these challenges, Forum Retirement Partners maintains an on-going expansion program to improve its results of operations.

Key Takeaways:

• Revenue for the three months ended June 30, 1998 increased by $477,000, or 10%, to $5,117,000 compared to the same period in 1997.
• The revenue increase was primarily due to increases in residency fees and charges in the independent living, assisted living, and nursing components, as well as the favorable impact of the expansion units and increases in therapy and other ancillary healthcare services.
• Combined average occupancy at the nine senior living communities decreased by 0.3 percentage point to 93.8% for the three months ended June 30, 1998, and increased by 0.5 percentage point to 94.2% for the six months ended June 30, 1998, compared to the same periods in 1997.
• Net income was $832,000 for the three months ended June 30, 1998, compared to net income of $1,219,000 for the same period in 1997.
• Net income for the six months ended June 30, 1998 decreased by $1,604,000 to $142,000 as compared to $1,746,000 for the same period in 1997 due to the impact of the approximate $1.3 million one-time tax charge.
• Robert E. Parsons Jr., President of Forum Retirement, Inc., stated that the expansion units continue to stabilize and that growth in gross sales will offset incremental increases in operating costs.

Statistics:

• Revenue for the three months ended June 30, 1998: $5,117,000
• Revenue increase from 1997: $477,000, or 10%
• Net income for the three months ended June 30, 1998: $832,000
• Combined average occupancy at the nine senior living communities for the three months ended June 30, 1998: 93.8%
• Net income per limited partner unit for the three months ended June 30, 1998: $0.05 per unit

Sources:

• Forum Retirement Partners, L.P. press release, August 12, 1998
• Host Marriott Corporation press release, April 16, 1998
• Host Marriott Corporation press release, July 21, 1998
• Host Marriott Corporation press release, July 22, 1998
• Securities and Exchange Commission filings