While Lifespace’s 2023 performance reflected a recovery from 2022 financial performance reflected, 2024 represented a year of marked improvements across the enterprise. Within the OG, nearly all operating and financial metrics are improved over 2023, including significant increases to independent living occupancy that are expected to help bolster future performance. Lifespace’s prudent asset management strategy not only resulted in adding a high-quality asset such as Newcastle Place to the OG, it also led to the decision to divest Abbey Delray, a community located in South Florida that has consistently underperformed. Lifespace had also identified investor relations as a key area of emphasis for the organization over the past few years. As such, the positive trends indicative of a team successfully executing on their operating and strategic plans was particularly well received by prospective investors.

Fitch Rating’s affirmation of the ‘BBB’ rating and adjustment of the outlook from “Negative” to “Stable”, reflected these positive operating trends. With the affirmation of the rating and change in outlook, Sims structured the financing without a debt service reserve fund for the bonds. Both the taxable and tax-exempt bonds included a 7-year call feature with a 103% premium, providing flexibility and certainty – an important factor recognizing the cost of capital for the taxable bonds.