When a Two-Star Rating Is a Buy: Brookdale Senior Living, Inc. (BKD)

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Another player in housing for the elderly, Capital Senior Living Corporation (NYSE:CSU), is on an acquisition binge as well lately. This January, it bought for $10.83 million a health care property in Ohio. Last year, it had 16 acquisitions of senior living communities. With these new acquisitions, Capital Senior Living now is estimated to have 101 communities across the U.S. capable of serving 13,600 residents.

In terms of size and reach, however, Brookdale remains superior with its growing suite of 645 senior communities with an estimated 60,000 residents in various regions of the U.S. Not even the PulteGroup, Inc. (NYSE:PHM), one of the largest US homebuilders which also has an interest in developing senior communities, can match Brookdale in the senior housing industry subsector. Del Webb, the Pulte unit specializing in retirement communities, only has 59 of such properties across the US. Notably though, the PulteGroup is more focused on developing move-up homes and residences for first-time homeowners.

A Florida gauge in market dominance

In closing, the presence of Brookdale in Florida, one of the Sunbelt States winning in the U.S. migration game and as a retirement destination, best illustrates at a glance its market dominance among its ilk. Brookdale, all told, has 107 retirement communities both for assisted and independent living in the Sunshine State. In stark contrast, Pulte’s Del Webb has just seven while Capital Senior trails with only one.

The article When a Two-Star Rating Is a Buy originally appeared on Fool.com and is written by Arturo Cuevas.

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