Excellence stands alone

Greenspring receives an A+ rating from Fitch

Kelly A. Shue
November 23, 2018

No matter how you look at it, Greenspring is an excellent community.

"My wife Anita and I looked at six different communities before moving to Greenspring four years ago," says Herman Anschuetz, who serves on the Resident Council Finance Committee of the Springfield, Va., community. "We discovered that Greenspring provides the best value for the money spent. We have not been disappointed. Since day one, we have been impressed with how well the community is managed and maintained."

Fitch Ratings, a bond-rating agency that provides information to current and potential purchasers of publically traded bonds, agrees. For the fourth time in as many years, the agency awarded Greenspring with an A+ rating in its annual review.

According to Fitch, "Greenspring's solid financial and qualitative factors make it one of only two continuing care retirement communities (CCRCs) to hold an A+ rating." In addition, Fitch graded Greenspring's rating outlook as positive, the only CCRC in the country to receive such a rating.

"The awarding of the A+ rating says that, financially, Greenspring is very strong and viable within the marketplace," says Greenspring Director of Finance Cody Burns. "Our financial strength ensures that we will be able to sustain our operations and provide a safe and engaging place to live for our current residents, as well as future residents."

The goods to back it up

"The affirmation of the A+ rating reflects Greenspring's consistently high occupancy across all levels of care, favorable service area, and excellent cash flow that has supported liquidity growth and robust debt service coverage levels," reports Fitch.

Almost all of Greenspring's financial metrics exceed Fitch's A+ category medians, most notably its high occupancy of 98%, more than 5% higher than the CCRC industry average.

"Greenspring's appeal keeps occupancy high, which, along with prudent financial management, keeps it financially strong," says Herman.

In addition, Greenspring's 1,398 independent living apartment homes—ranging from studios to two-bedroom, two-bath styles—provides a wide variety of living options to meet a range of budgets.   

Another contributing factor to Greenspring's A+ rating is the community's focus on future development.

Because of its well-managed finances, Greenspring is currently undergoing the first phase of a $70 million, campuswide capital investment program. This first phase includes an expansion of the community's rehabilitation services, a redesign of long-term care rooms in the continuing care neighborhood, a new aquatics and fitness center, and a redesign of the Town Center Clubhouse.

"We are able to finance this entire project from the reserves we accumulated over our first 20 years of operation," says Burns. "Our plan is to not take on any additional debt while ensuring that Greenspring stays an industry leader in amenities and services."

Day-to-day finances

While providing a solid financial base for the future, Greenspring's monthly service package also helps community members by enabling them to plan for their daily expenses with confidence.

The monthly service package covers the costs of all utilities (including telephone, DirectTV, and Wi-Fi) and home and seasonal maintenance such as snow removal and furnace maintenance. All major repairs, 24-hour security, flexible meal plans, and cable television are also included.

"I strongly believe that Greenspring provides for our money over and above what we would experience if we lived elsewhere," says community member Fran Duvall, who moved there in 2003. "In other words, we get a big bang for the buck."

"Our fees are evaluated each year and rise only in direct correlation to the costs we experience for labor, repairs, and maintenance," says Burns. "Greenspring's size and scale allow us to offer a multitude of programs and services while being able to spread that cost across a larger resident base. Community members can be sure that Greenspring is charging just enough to cover its costs while continuing to provide consistent services today and in the future."

Bountiful opportunities

With a bright financial future, community members at Greenspring, like the Anschuetzes, enjoy the peace of mind that comes with living at the most financially secure CCRC in the nation.

"Reserves are ample, occupancy remains high, and it is reasonable to expect this area to continue having a population capable of supporting the necessary level of occupancy," says Herman. "Improvements underway, as well as those planned for the earliest buildings, will maintain Greenspring as an up-to-date attractive senior living option. We consider ourselves very fortunate to live here."